Indian Cell and Module Market – Current Demand & Supplies
The solar market in India has been going through tough times with some solace of picking up of demand. The customs clearances of Chinese goods and restarting of pickups by DHL & Fedex have given much relief to the business community as solar products are among the largest importing items from China. The news of bringing of BCD along SGD could be another shot in the arm for pushing local manufacturing of solar products in India. Globally speaking, the polysilicon market has seen some upward movement in poly ingot and wafer prices following demand from India and partially due to shortage of supplies because of extension of June maintenance of ingot and wafering plants in China.
Imported Supplies
The issue of customs clearance of solar products from China has been relatively eased out throughout the country at the moment. The prices of multi solar cells have slightly seen upward movement but Tier- 2 Chinese cell makers are still selling around USD 0.28/ USD 0.29 per pc (FOB China Port) for 18.8% multi cells. The imported multi 330/335 watt modules by Tier – 2 & 3 are on offer at USD 0.155 per watt (FOB China). The prices of multi wafers have seen upward movement following demand from India.
Local Manufacturing
The local manufacturers of solar cells and modules have started doing reasonably well in India. However, the lockdown conditions in some parts of the country may impact again the manufacturing activities of solar products in a limited way. The issues of BCD and SGD should be resolved by the Govt of India at the earliest in order to attract more and more investments in the solar cells and module manufacturing greenfield projects and expansions by existing players. Govt of India must clarify implications of BCD for SEZ units at the earliest.
Demand
The demand for solar cells and modules has remained impressive due to Govt tenders in the pipeline. The larger tender orders under schemes like CPSU are still going to go into the manufacturing stage in the next couple of months. The tenders for pumps and rooftop have been playing an anchor role in ushering the demand for solar products in the country. The demand from the private sector has also been picking up with the objective of operational savings by cash rich companies.
Impact on Solar Cells and Solar Module Pricing
The prices of solar cells and modules remained in range bound during the week. The dollar is expected to remain in the range of Rs. 75/76. The prices of 330 watt DCR modules have been seen around Rs. 19 to 19.50 per watt. The rates of local non DCR multi 330/335 watt modules by Tier-1 and Tier-2 local manufacturers have seen around Rs. 16 to Rs. 17 per watt whereas non DCR mono PERC 380 watt modules are available in the range of Rs. 18.75 to 19.00 per watt.
See you next week for the next analysis of the prices. Stay at work safely. Best Wishes.