Market research firm, EnergyTrend, has warned of weak demand across the PV supply chain in July, forcing inventory up and prices down.
Price declines were said in some cases to have dropped below producers' breakeven point, while weak demand has led some manufacturers stopping polysilicon purchases as inventory spiked.
No specific reasons for the drop in demand were given, and EnergyTrend did not suggest it was part of a broader trend.
EnergyTrend said that multicrystalline wafer prices had declined 2.26% to US$0.952/piece in the last week, while monocrystalline wafer prices dropped by 0.76% to US$1.182/piece.
Solar cell prices were said to have dropped 2.23% to US$0.351/watt, due to the weak demand and excess inventory, according to the market research firm.
As a result, PV module prices were said to have declined 0.86% to US$0.577/watt on average.
Arthur Hsu, research manager of EnergyTrend said: “Among all PV products, polysilicon is the one that has relatively stable pricing. However, since more people have requested to renegotiate polysilicon prices and contract material clearance went slow in June, manufacturers have started to purchase less polysilicon or even stopped purchasing it. On the other hand, wafer and module price quotes continued to drop, with multi-si wafer prices dropping below US$0.90/piece to US$0.88/piece.”
Manufacturers of silicon wafers and solar cells were said to have lowered prices on weak demand in an effort to keep utilisation rates high.