Despite cost reductions achieved ahead of schedule in polysilicon and wafer production, PV Crystalox Solar has warned that continued weakness in the PV industry could result in the wafer supplier generating losses in the second half of the year.
PV Crystalox noted that wafer ASPs during second quarter remained broadly in line with earlier expectations but weak demand meant that wafer shipment volumes for the first half of the year would be slightly below the guidance of 210-225MW issued in May.
Previously, PV Crystalox had stated in its annual report that it expected shipments in the first half of 2011 to be in the range of 225-240MW.
Polysilicon production costs have been falling as full capacity at its plant in Germany is expected to reach nameplate capacity of 1,800MT during the second half of 2011. Fully loaded production cost has been below the average price of contracted polysilicon.
PV Crystalox highlighted in its annual report that average wafer production costs had decreased by 20% during 2010, which exceeded the expected cost reduction target of 10–15%. PV Crystalox noted that it was targeting wafer cost reduction of a further 10–15% in 2011.