67 Percent of China Solar Panel Manufacturers Plan to Raise Prices in 2007 – Higher Solar Cell Costs Cited
Sixty-seven percent of China’s solar panel manufacturers plan to raise export prices in 2007, according to Global Sources’ China Sourcing Report: Solar Panels ( http://www.chinasourcingreports.com ).
Thursday February 8, 2007 HONG KONG, Feb. 8
source: Yahoo Finance /press release
http://biz.yahoo.com/prnews/070208/hkth002.html?.v=50
“Solar cell prices, which have increased by about US$0.30 per watt in the past two years, are expected to rise further, driving the cost of solar panels higher,” said Global Sources general manager of Content Development, Michael Kleist.”With margins at about five percent for many manufacturers, the market is expected to continue to be challenging in the months ahead.”
Among surveyed solar panel manufacturers’ top concerns and primary challenges for the next 12 months:
— 56 percent cited higher raw material costs;
— 20 percent said price competition;
— 14 percent cited design copying/piracy; and
— 10 percent said power and labor shortages.
China Solar Panel Manufacturers Reducing Costs, Targeting Exports to the EU.
“In order to increase profit margins, many manufacturers say they plan to increase capacity to gain economies of scale,” said Kleist.
According to surveyed manufacturers:
— 22 percent plan to increase capacity by more than 50 percent;
— 20 percent expect increases of 20 to 50 percent;
— 50 percent plan increases of up to 20 percent; and
— 8 percent plan to maintain current capacity.
“One bright spot for China’s exporters is the EU,” said Kleist. “Due to favorable legislation, which includes financial incentives encouraging the use of renewable energy, many manufacturers are targeting exports to this market.”
Among surveyed manufacturers:
— 74 percent plan to focus on exporting to the EU;
— 20 percent plan to target exports to the United States; and
— 6 percent plan to focus on the Mideast/Africa and Asia.
In-Factory Interviews, Price Forecasts and New Solar Panel Models
The 101-page China Sourcing Report: Solar Panels provides proprietary market information from in-person factory visits to 17 manufacturers and interviews with 32 more suppliers. It includes a Product Gallery featuring 100 of the most popular export models, with key specifications and full-color pictures. The report’s surveys, price trends and supply forecasts help buyers make better-informed purchasing decisions.
China Sourcing Reports ( http://www.chinasourcingreports.com ) are part of Global Sources’ sourcing and product information services. These include Global Sources trade magazines, Global Sources Online ( http://www.globalsources.com ), Global Sources Direct ( http://www.globalsourcesdirect.com ) and the China Sourcing Fairs ( http://www.chinasourcingfair.com ). For more information, visit http://www.corporate.globalsources.com .