NEWS I REVIEW Solar glass prices tipped to stabilise
AFTER FALLING by about 50 percent from 2009 through 2014, pricing for solar glass is set to commence a rebound starting next year, as anti-dumping duties levied by the European Union go into effect on Chinese suppliers.
Average global pricing for glass used in photovoltaic (PV) solar is expected to fall to $4.60 per square meter this year, down from $10.40 in 2009, according to IHS Technology. However, pricing will begin to stabilize and begin a long-term increase starting next year. By 2018, solar glass pricing will increase to $5.90 per square meter, up 11 percent from the low point this year, as presented in the attached fi gure.
“The sharp drop in solar glass prices during the last fi ve years was the result of massive oversupply in the market,” said Karl Melkonyan, solar research analyst at IHS Technology. “Chinese government subsidies on solar glass caused domestic suppliers to increase production and exports. However, the European Union’s move to impose countervailing duties on solar glass imported from China will limit supply in the market, leading to an expected increase in prices.”
HIS has released a new report entitled “Module Innovations to Create Opportunity for PV Materials Market” from the Power & Energy service at IHS. In 2010, imports accounted for only 7 percent of total solar glass supply in Europe. This share grew to 30 percent in 2013. For 2014, more than 90 percent of imports will come from China, up from 35 percent in 2010. This means that in 2014, Chinese manufacturers will account for 27 percent of total solar glass supply in Europe, up from 2.5 percent in 2010.
Encouraged by government subsidies, many Chinese glass manufacturers entered the solar glass segment and started an aggressive pricing strategy in overseas markets, following a similar pattern to China’s participation in the module space. The price undercutting caused a strong oversupply and price collapse in the market.
GTAT Chapter 11 affects Meyer Burger US production
High imports from China led to lost profi ts and shutdowns of factories for European solar glass producers.
In response, the European Union in May imposed fi ve-year tariffs on solar glass from China. The EU imposed countervailing duties on solar glass imported from China in a range of about 3 to 17 percent, depending on the level of subsidy that a solar glass company received from China.
Glass shippers
IHS estimates the global demand for fl at glass—the parent category of solar glass—in 2013 was 47.6 million metric tons. With an estimated 55 percent share, China dominates fl at glass supply. Europe follows with a 16 percent share.
The Asia-Pacifi c region is forecast to remain the largest and fastest-growing market for solar glass during the next fi ve years. However, only a few fi rst-tier suppliers from China will provide what customers consider to be high-end products. In other developments in solar glass, the global market share of anti- refl ective coated (ARC) solar glass in 2018 is projected to reach 85 percent.
Anti-refl ective coatings increase module power output and lower the cost-per-watt, which is the key value measure for any solar-power-generating system. After a weak 2012, the fast-recovering PV market has also contributed to a strong demand for solar glass with AR coating, with about 50 percent growth during each of 2013 and 2014.
MEYER BURGER TECHNOLOGY has announced that its production capacities at the Colorado Springs, CO/USA site, previously expanded expressly for a project with GT Advanced Technologies Inc. (GTAT), are being adjusted in connection with GTAT’s motion for protection under Chapter 11 of the United States Bankruptcy Code.
On October 6, 2014, GTAT, a customer of the Meyer Burger Group, submitted a motion in accordance with Chapter 11 of the US Bankruptcy Code at the U.S. Bankruptcy Court in New Hampshire. The associated legal proceedings are still ongoing and will probably extend over several months. Meyer Burger Group is unable to comment on the ongoing legal proceedings. Over the preceding 12 months, the Meyer Burger Group has increased its personnel at the site for a specifi c project with GTAT in the area of slicing sapphire with industrial diamond wire saws.
From the legal proceedings to date and customer discussions, Meyer Burger assumes that GTAT will be unable to continue the project as planned. The Board of Directors and Management of the Meyer Burger Group have therefore decided to reduce the Colorado Springs capacities built up expressly for this project with immediate effect, leading to a workforce reduction of 105 persons at this site.
After the workforce reduction, Meyer Burger will still employ around 200 persons at its Colorado Springs site, who will continue to safeguard the US business in slicing solutions and diamond wire technology for the solar industry, sapphire industry and other industrial sectors.
Issue V 2014 I
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