Oversupply Will Prevent Global PV Market From Recovering In Near Future
According to EnergyTrend, a division of TrendForce, prices across the PV supply chain have collapsed to new lows in the second half of 2016 due to plunging demand.
The current market analysis indicates that most manufacturers are not achieving profitability.
Looking ahead to 2017, the entire supply chain "“ from polysilicon to PV modules "“ will see supply exceeding demand significantly by 18~35%. In sum, EnergyTrend expects oversupply to become quite severe.
EnergyTrend has been anticipating that demand would drop sharply in the second half of the year mainly because of the effects of China's installation rush. Much of the domestic demand for the second half of the year was shifted to the first half, when the installation rush caused the market to overheat. After the rush ended in June, China as the world's largest PV market fell into a slump and dragged down the rest of the global market.
Looking ahead to the fourth quarter and 2017, EnergyTrend expects the global PV market will be at a standstill in 2017 with the annual growth rate at zero for the first time on record.