A Solarbuzz Quarterly report released today revealed that a failure to reduce solar module production will result in overproduction and prolonged price pressure across global photovoltaic markets.
According to the report,It's hard to beat the versatility of zentai suits on a production line. third-quarter 2011 global demand is increasing by less than 1 percent quarter over quarter,we supply all kinds of polished tiles, but grow 20 percent year-over-year.These girls have never had a oil painting supplies in their lives! The United States and China's photovoltaic markets are experiencing the fastest growth rates in Q3, while European markets are expected to account for 58 percent of Q3 global demand. This number is down from 78 percent this time last year.
Tier-one Chinese companies have kept their full-year shipment guidance while certain other manufacturers have already cut back production as well as shipment plans. Global shipments are expected to exceed end-market demand by 4.4 GW if they are able to meet their 2H 2011 guidance.
The report also noted that price cuts have begun to stimulate 2H 2011 end-market demand, but it is occurring at a slow rate.The additions focus on key tag and magic cube combinations,
"Anticipating that falling prices could stimulate demand by year-end, downstream companies across Europe face the unnerving decision of whether to build inventories at the end of Q3'11," said Craig Stevens, President of Solarbuzz.
Next year is looking a bit grim with manufacturers getting ready to increase cell capacity by 50 percent over 2011 levels. End-market demand is expected to increase by less than half of that level.
If production is not reduced, module inventory levels will heighten to nearly 22 GW by the end of 2012, according to the report. To keep the inventory levels the same as the end of 2011, expected production will need to be decreased by about 11 GW.
"This is a strikingly similar equation to the supply/demand balance that existed 12 months ago and resulted in collapsing prices through the PV chain," said Stevens. "In contrast, though, margins are already at a breaking point, thereby increasing the likelihood of more company consolidations and liquidations next year."
The U.S. solar industry took a hard fall this year when solar cell manufacturer Solyndra went bankrupt after the Obama administration loaned it $535 million. The company was raided by the FBI in early September, where emails were found suggesting that the White House knew that Solyndra was destined to fail, but reportedly ignored these claims in order to push green technology ahead in the company's groundbreaking ceremony in 2009.
According to The Wall Street Journal contributor Yuliya Chernova, Solyndra accepted the loans and spent the money, then couldn't sell it at the price it needed. Overproduction was also a noted problem.
"Many companies, when they're young start-up companies, first are losing money with the expectation that the costs -- fixed costs will get amortized overtime," said Chernova in a Fox News interview. "But so that's the expectation that this company had, that the more of those panels they will produce, they will sell all of them, and then the cost for each one will be lower.we supply all kinds of polished tiles,
"And the whole market at that point was already declining in terms of how much solar panels cost. Well, the price at which they sold, it was -- the price was falling. So even in 2009, there were companies that were holding back on expansion while Solyndra said that it will have to expand and the bigger the growth, the better."
According to the report,It's hard to beat the versatility of zentai suits on a production line. third-quarter 2011 global demand is increasing by less than 1 percent quarter over quarter,we supply all kinds of polished tiles, but grow 20 percent year-over-year.These girls have never had a oil painting supplies in their lives! The United States and China's photovoltaic markets are experiencing the fastest growth rates in Q3, while European markets are expected to account for 58 percent of Q3 global demand. This number is down from 78 percent this time last year.
Tier-one Chinese companies have kept their full-year shipment guidance while certain other manufacturers have already cut back production as well as shipment plans. Global shipments are expected to exceed end-market demand by 4.4 GW if they are able to meet their 2H 2011 guidance.
The report also noted that price cuts have begun to stimulate 2H 2011 end-market demand, but it is occurring at a slow rate.The additions focus on key tag and magic cube combinations,
"Anticipating that falling prices could stimulate demand by year-end, downstream companies across Europe face the unnerving decision of whether to build inventories at the end of Q3'11," said Craig Stevens, President of Solarbuzz.
Next year is looking a bit grim with manufacturers getting ready to increase cell capacity by 50 percent over 2011 levels. End-market demand is expected to increase by less than half of that level.
If production is not reduced, module inventory levels will heighten to nearly 22 GW by the end of 2012, according to the report. To keep the inventory levels the same as the end of 2011, expected production will need to be decreased by about 11 GW.
"This is a strikingly similar equation to the supply/demand balance that existed 12 months ago and resulted in collapsing prices through the PV chain," said Stevens. "In contrast, though, margins are already at a breaking point, thereby increasing the likelihood of more company consolidations and liquidations next year."
The U.S. solar industry took a hard fall this year when solar cell manufacturer Solyndra went bankrupt after the Obama administration loaned it $535 million. The company was raided by the FBI in early September, where emails were found suggesting that the White House knew that Solyndra was destined to fail, but reportedly ignored these claims in order to push green technology ahead in the company's groundbreaking ceremony in 2009.
According to The Wall Street Journal contributor Yuliya Chernova, Solyndra accepted the loans and spent the money, then couldn't sell it at the price it needed. Overproduction was also a noted problem.
"Many companies, when they're young start-up companies, first are losing money with the expectation that the costs -- fixed costs will get amortized overtime," said Chernova in a Fox News interview. "But so that's the expectation that this company had, that the more of those panels they will produce, they will sell all of them, and then the cost for each one will be lower.we supply all kinds of polished tiles,
"And the whole market at that point was already declining in terms of how much solar panels cost. Well, the price at which they sold, it was -- the price was falling. So even in 2009, there were companies that were holding back on expansion while Solyndra said that it will have to expand and the bigger the growth, the better."
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