Solars Could See Pressure as PV Pricing, Demand Drop Further (STP) (JASO) (LDK)
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Solar stocks are trading well amid news that both demand and pricing took a hit in October, both falling to multi-month lows.
IHS (NYSE: IHS) iSuppli said that pricing for "9N solar polysilicon in October plunged by more than 9 percent, while the contract segment decreased by about 1 percent. Pricing for the 6N to 8N grade fell by 7 percent on the spot market, and the contract segment tumbled by more than 8 percent."
The news indicates that supply of the product its still outpacing demand. In any case, pricing is determined more by market expectations rather than an actual balance of supply and demand.
iSuppli sees demand falling again in November, with some rebound expected in December and January. iSuppli sees "...spot market pricing in December 2012 and January 2013 for solar polysilicon in the 6N to 8N grade is expected to rise by 2.4 percent, the first increase since January of 2012, and a dramatic change from the 8.5 percent plunge in September and the 7.0 percent drop in October. For 9N and higher-grade polysilicon, spot market pricing will be flat during the same time period—the first time in nine months in which there would be no decline."
On watch today are names like JA Solar (Nasdaq: JASO), SunTech Power (NYSE: STP), Yingli Green Energy (NYSE: YGE), LDK Solar (NYSE: LDK), First Solar (Nasdaq; FSLR), and others.
IHS (NYSE: IHS) iSuppli said that pricing for "9N solar polysilicon in October plunged by more than 9 percent, while the contract segment decreased by about 1 percent. Pricing for the 6N to 8N grade fell by 7 percent on the spot market, and the contract segment tumbled by more than 8 percent."
The news indicates that supply of the product its still outpacing demand. In any case, pricing is determined more by market expectations rather than an actual balance of supply and demand.
iSuppli sees demand falling again in November, with some rebound expected in December and January. iSuppli sees "...spot market pricing in December 2012 and January 2013 for solar polysilicon in the 6N to 8N grade is expected to rise by 2.4 percent, the first increase since January of 2012, and a dramatic change from the 8.5 percent plunge in September and the 7.0 percent drop in October. For 9N and higher-grade polysilicon, spot market pricing will be flat during the same time period—the first time in nine months in which there would be no decline."
On watch today are names like JA Solar (Nasdaq: JASO), SunTech Power (NYSE: STP), Yingli Green Energy (NYSE: YGE), LDK Solar (NYSE: LDK), First Solar (Nasdaq; FSLR), and others.
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