Recent revenue and shipment announcements by some of China's major PV makers suggest that growth for end-market demand is slowing.
With the exception of Yingli (primarily affected by the depreciation of the Euro vs. Yuan), the major Chinese PV players showed slowing growth vs. previous quarters -- and their growth in 1Q10 was mainly due to increased demand in Europe to get new PV systems installed ahead of Germany's upcoming changes to its feed-in tariff.
With the exception of Yingli (primarily affected by the depreciation of the Euro vs. Yuan), the major Chinese PV players showed slowing growth vs. previous quarters -- and their growth in 1Q10 was mainly due to increased demand in Europe to get new PV systems installed ahead of Germany's upcoming changes to its feed-in tariff.
Coupled with the euro volatility, this could mean a weaker outlook for installations through this year and maybe 2011, and will likely affect demand since all these suppliers are significantly exposed to European markets. Continued financial weakness in Europe (Greece, Portugal, Spain, and Italy), could lead to a roll back in solar incentives, which could affect the PV market for years.
The currency valuations also could spell cost problems for Chinese suppliers, since they report costs in dollars but sales in Euros -- this squeezes gross margins, and narrows the cost-advantage gap between them and European companies (e.g. REC, SolarWorld), Koh writes.
Source: Electro IQ Read the full article here.
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