September 1, 2016   Posted by: Wouter Vermeersch

Market Analysis Asian PV Panels Q3 2016

Market Analysis WP• Prices: general decline

• Availability: oversupply

The increased stockpiles and volatility in the solar panel market, as a result of overcapacity and geopolitical turmoil, have accelerated a global price slump. In particular the slower demand in China has triggered a general price decline, not just in China; but also across Asia, with spillovers onto the global market.

Chinese Tier 1 panel makers seek to increase shipments from their duty-free factories in South-East-Asia (Vietnam, Thailand, etc.) to Europe in order to compensate the worse-than-anticipated sales in China. The vicious competition among Chinese module makers has also forced non-Chinese producers to adapt lower price quotes.

During summer vacation, volumes are relatively limited. An oversupply in the European market has been gradually building during this quarter, which is becoming apparent through price reductions on a broad front. Solar panel prices from all regions and in nearly every product class are below those of the previous quarter.

Both poly and mono panel prices are thus plummetting this quarter. However, the price correction of mono panels is less than poly panels, as these are supported by increased demand for high efficiency in the residential market.