China's photovoltaic exports to the EU are hindered by quality competition and powerlessness
2019-09-21 14:06:55
As the price of PV modules rebounded, the entire PV industry ushered in a turning point in the middle of last year after experiencing more than two years of losses. However, China's photovoltaic industry is far from being predicated, not only facing obstacles such as delays in mergers and acquisitions, lack of quality competition, but also some local governments are blindly optimistic, re-interpreting offside interventions, resulting in the resurgence of backward production capacity.
The price recovery and stabilization and reorganization are far from complete
Recently, reporters visited a number of PV companies in Jiangsu, Jiangxi, Hebei and other places to understand that since the beginning of 2013, the price of photovoltaic modules as terminal products has rebounded slightly, and finally stabilized at about 70 cents / watt.
Dr. Wang Shijiang from the China Photovoltaic Industry Alliance Secretariat calculated the cost of the photovoltaic module production in the industry: 11 cents/watt of silicon material, 11 cents/watt of silicon wafer manufacturing, and 13 cents/watt of cell sheet manufacturing. Manufacturing 15 cents / watt = 50 cents / watt "This is only the production cost, the full cost also increases equipment depreciation, capital costs, management costs, sales expenses and other factors. PV module sales price of 65 cents or more, you can Covering the full cost of the entire industry chain."
“In the second half of 2013, the company's gross profit can reach about 10%, net profit is about 7%. The same is 70 cents / watt of the price, in the second quarter is at a loss. On the one hand, the photovoltaic industry through technological progress and management Fine-grained, has been reducing costs. On the other hand, companies with better living conditions in the industry have been working hard to reduce the asset-liability ratio, and the cost of capital is also falling." Lu Tingxiu, chairman of China Light and Power, introduced.
"From the perspective of listed companies, more than 80% of domestic A-share PV companies have turned losses into profits in 2013." Wang Shijiang said, "The profitability of the photovoltaic industry will increase this year, but the foundation is still weak. This is because The merger and reorganization of the photovoltaic industry is far from complete, and there is no fundamental change in overcapacity."
Gao Jifan, chairman of Changzhou Tianhe Company, said that in 2012, the global PV module production capacity reached a record high of 65 GW, of which China has 40 GW. In contrast, in 2012, the global market component demand was only 31 GW, and in 2013 it reached approximately 36 GW. "The demand for photovoltaic products is still growing this year, but the situation of oversupply will not change." Under the overcapacity, some small and medium-sized enterprises were shut down, but the machinery and equipment were in the factory building and did not completely withdraw. After the component market price rebounded to 70 cents/watt in the second half of last year, some small and medium-sized enterprises resumed work again, and the industry's small, scattered and chaotic phenomena are on the rise.
"In the past few years, the PV investment boom, many PV companies are the performance projects of the local government's economic transformation and upgrading. The local government intervened in the industry's loss-making and provided various protection measures to make the company become 'discontinued without bankruptcy'. 'Zombie enterprise'." Wang Shijiang said, "This practice seriously interferes with the market's regular force, and the pace of mergers and acquisitions in the industry is sluggish. The 'excellent and inferior' has become the leading advantage of China's photovoltaic industry. Chasing closer," said Wang Shijiang.
Export to the EU is blocked and quality competition is powerless
According to the price commitment negotiations between China and the EU on photovoltaic products, starting from August 6, 2013, the bottom line of China's PV module exports to the EU market is 56 Euro cents/watt (about 76 cents/watt). The total annual output of China's PV products exported to Europe must not exceed 7 GW, and the validity period is until the end of 2015. The bottom line of the price can be adjusted in time according to the decline in industry costs.
The reporter learned from a number of PV leading enterprises such as China Light and Power, Changzhou Tianhe, Jingke Energy, Hebei Yingli, etc., since the implementation of the price commitment, the export quotas won by the Ministry of Commerce and the European Commission have been negotiated repeatedly, but because of the quality of the products. Insufficient competitiveness, and wasted.
The China Photovoltaic Industry Alliance has roughly estimated that after the implementation of the price commitment, China's PV products shipments to the EU fell by more than 70% year-on-year, which means that the utilization rate of export quotas is less than 30%. "After setting the price bottom line, the 'low price' advantage of China's PV modules in the EU market is completely lost, and the quality of products becomes the decisive factor of competitiveness." Wang Shijiang said.
Zhong Zhangwei, manager of CLP's PV market, said that before the price promise, PV products in mainland China have occupied about 70% of the PV market share in the EU for a long time, and the remaining shares are divided by Taiwan, South Korea, Japan and the EU's own companies. Photovoltaic products from Japan and the European Union are dominated by high-end PV modules, while products from South Korea, Taiwan and the mainland are middle and low-end. Since August last year, the market share originally belonging to the mainland has been mainly seized by products from South Korea and Taiwan.
“Overall, the quality of China's middle and low-end products is not as good as that of Taiwan and South Korea. The performance of high-end products is not as good as that of Japan and the European Union. The market share in the EU market is less than 30%.†Wang Shijiang said, “China’s top ten PV companies have Long-term occupation of 8 seats, but in the EU market is widely recognized into the high-end brand only Wuxi Suntech. After the bankruptcy and reorganization of Wuxi Suntech last year, China's photovoltaic industry is not strong, but the situation is even more severe."
It is understood that SUNPOWER, Japan Sharp and other companies in the global photovoltaic industry with a leading technology, the photoelectric conversion rate of its high-efficiency photovoltaic cells has reached 22%, and China has stayed about 20% two or three years ago.
Gao Jifan introduced that China's photovoltaic industry has gone through a development path of low-price competition for many years, and pays insufficient attention to product quality and brand influence. “After the EU price commitment, the original defects have been highlighted. Whether China's PV industry is developing benign depends not only on the global market share, but also on the market share of PV high-end markets such as the EU and Japan.â€
In the interview, Zhongdian Photovoltaic, Changzhou Tianhe and other leading PV companies all admitted that the delay of mergers and acquisitions in China's PV industry has made it difficult for superior enterprises to win, and they have struggled near the break-even point for a long time, resulting in the difficulty of upgrading products with “less money availableâ€.
Wang Bohua, secretary general of the China Photovoltaic Industry Alliance, said that on the other hand, China's photovoltaic industry is facing a short-term market-side short-selling road. “High-performance PV products are often not cost-effective at the beginning of the market. It is necessary to cultivate the market and time in order to have market competitiveness. On the market side, the Japanese and American markets are less sensitive to price/performance ratio, and China has always been a low-price bid.â€
The government’s frequent offside production capacity is resurgent
As the photovoltaic industry began to turn losses into profits in the second half of last year, the reporters found that some local governments are eager to move, using administrative means to fuel the resurgence of photovoltaic backward production capacity.
The reporter learned from a prefecture-level city in Jiangsu that since the second half of 2013, the city has allocated financial funds to the Municipal Photovoltaic Industry Association to help the recovery of local PV companies, and then the industry associations have come to complete the procurement of complementary products in the city. Make a reward.
Wang Shijiang said that in the field of polysilicon as a raw material for photovoltaics, only 43 companies in China have maintained production last year, but only two or three of the 34 companies that have stopped production for more than a year have gone bankrupt. Recently, reporters learned in Qinghai, Sichuan, and Jiangxi that after the industry showed signs of recovery, these “discontinued and not bankrupt†enterprises were preparing for the return of work with the support of the local government.
The new energy branch of the Yellow River Hydropower Company has two 1,250-ton production lines in the polysilicon project in the Xining Economic Development Zone. Due to the small size of the single line, the production energy consumption is high. It is understood that the production cost per ton of polysilicon is 170,000 yuan, and the products are all purchased by the photovoltaic cell companies under the same Yellow River Hydropower Company for 250,000 yuan per ton.
The reporter learned that the current market price of polysilicon is only 150,000 yuan per ton. The polysilicon project of the New Energy Branch of the Yellow River Hydropower Company is clearly unable to adapt to market competition. However, it is such a polysilicon project that should have been eliminated by the market. Not only does the Yellow River Hydropower Company, a state-owned enterprise, pay the price at the bottom, but the Qinghai provincial government, where the project is located, is more coordinating bank lending, hoping to take advantage of the timing of the PV industry to turn losses. Expand production capacity.
A person from the industry said that in order to promote the resumption of the "zombie enterprise" that has been discontinued for a long time, since the second half of last year, in the case that the financial sector generally tightened the banks in the photovoltaic industry, some local governments even borrowed from the government financing platform to the bank. Transfer funds to PV companies. Such an approach has greatly reduced the effectiveness of the country's financial means to promote the merger and reorganization of the photovoltaic industry.
“In the first half of last year, a medium-sized photovoltaic cell company that had been shut down for a long time found us and wanted to sell the equipment at a low price. After the component market rebounded in the second half of the year, the company received financial support from the local government and owed the bank’s Loan, while starting to resume production." Lu Tingxiu introduced.
"China's photovoltaic industry does not need to be deeply adjusted to eliminate backward production capacity. But the reality is that the photovoltaic industry has improved slightly. Local governments have mobilized production factors such as capital and land to raise backward production capacity from local legitimate interests." Wang Shijiang believes that "there is no enterprise." Bankruptcy to capacity 'this leg, only relying on 'increased market demand', the balance of supply and demand in the photovoltaic industry will be delayed by three or four years. What is more frightening is that the industry order is still chaotic."
The industry believes that on the one hand, China's photovoltaic industry should strengthen self-discipline, adhere to market-changing decision-making, and avoid advancing for the blind optimism of local governments. On the other hand, the non-market-oriented credit situation of banks affected by local governments may be difficult to change in the short-term. In addition, the non-marketization of state-owned enterprises in the photovoltaic industry may not be able to enter a benign development track within a year or two.
The price recovery and stabilization and reorganization are far from complete
Recently, reporters visited a number of PV companies in Jiangsu, Jiangxi, Hebei and other places to understand that since the beginning of 2013, the price of photovoltaic modules as terminal products has rebounded slightly, and finally stabilized at about 70 cents / watt.
Dr. Wang Shijiang from the China Photovoltaic Industry Alliance Secretariat calculated the cost of the photovoltaic module production in the industry: 11 cents/watt of silicon material, 11 cents/watt of silicon wafer manufacturing, and 13 cents/watt of cell sheet manufacturing. Manufacturing 15 cents / watt = 50 cents / watt "This is only the production cost, the full cost also increases equipment depreciation, capital costs, management costs, sales expenses and other factors. PV module sales price of 65 cents or more, you can Covering the full cost of the entire industry chain."
“In the second half of 2013, the company's gross profit can reach about 10%, net profit is about 7%. The same is 70 cents / watt of the price, in the second quarter is at a loss. On the one hand, the photovoltaic industry through technological progress and management Fine-grained, has been reducing costs. On the other hand, companies with better living conditions in the industry have been working hard to reduce the asset-liability ratio, and the cost of capital is also falling." Lu Tingxiu, chairman of China Light and Power, introduced.
"From the perspective of listed companies, more than 80% of domestic A-share PV companies have turned losses into profits in 2013." Wang Shijiang said, "The profitability of the photovoltaic industry will increase this year, but the foundation is still weak. This is because The merger and reorganization of the photovoltaic industry is far from complete, and there is no fundamental change in overcapacity."
Gao Jifan, chairman of Changzhou Tianhe Company, said that in 2012, the global PV module production capacity reached a record high of 65 GW, of which China has 40 GW. In contrast, in 2012, the global market component demand was only 31 GW, and in 2013 it reached approximately 36 GW. "The demand for photovoltaic products is still growing this year, but the situation of oversupply will not change." Under the overcapacity, some small and medium-sized enterprises were shut down, but the machinery and equipment were in the factory building and did not completely withdraw. After the component market price rebounded to 70 cents/watt in the second half of last year, some small and medium-sized enterprises resumed work again, and the industry's small, scattered and chaotic phenomena are on the rise.
"In the past few years, the PV investment boom, many PV companies are the performance projects of the local government's economic transformation and upgrading. The local government intervened in the industry's loss-making and provided various protection measures to make the company become 'discontinued without bankruptcy'. 'Zombie enterprise'." Wang Shijiang said, "This practice seriously interferes with the market's regular force, and the pace of mergers and acquisitions in the industry is sluggish. The 'excellent and inferior' has become the leading advantage of China's photovoltaic industry. Chasing closer," said Wang Shijiang.
Export to the EU is blocked and quality competition is powerless
According to the price commitment negotiations between China and the EU on photovoltaic products, starting from August 6, 2013, the bottom line of China's PV module exports to the EU market is 56 Euro cents/watt (about 76 cents/watt). The total annual output of China's PV products exported to Europe must not exceed 7 GW, and the validity period is until the end of 2015. The bottom line of the price can be adjusted in time according to the decline in industry costs.
The reporter learned from a number of PV leading enterprises such as China Light and Power, Changzhou Tianhe, Jingke Energy, Hebei Yingli, etc., since the implementation of the price commitment, the export quotas won by the Ministry of Commerce and the European Commission have been negotiated repeatedly, but because of the quality of the products. Insufficient competitiveness, and wasted.
The China Photovoltaic Industry Alliance has roughly estimated that after the implementation of the price commitment, China's PV products shipments to the EU fell by more than 70% year-on-year, which means that the utilization rate of export quotas is less than 30%. "After setting the price bottom line, the 'low price' advantage of China's PV modules in the EU market is completely lost, and the quality of products becomes the decisive factor of competitiveness." Wang Shijiang said.
Zhong Zhangwei, manager of CLP's PV market, said that before the price promise, PV products in mainland China have occupied about 70% of the PV market share in the EU for a long time, and the remaining shares are divided by Taiwan, South Korea, Japan and the EU's own companies. Photovoltaic products from Japan and the European Union are dominated by high-end PV modules, while products from South Korea, Taiwan and the mainland are middle and low-end. Since August last year, the market share originally belonging to the mainland has been mainly seized by products from South Korea and Taiwan.
“Overall, the quality of China's middle and low-end products is not as good as that of Taiwan and South Korea. The performance of high-end products is not as good as that of Japan and the European Union. The market share in the EU market is less than 30%.†Wang Shijiang said, “China’s top ten PV companies have Long-term occupation of 8 seats, but in the EU market is widely recognized into the high-end brand only Wuxi Suntech. After the bankruptcy and reorganization of Wuxi Suntech last year, China's photovoltaic industry is not strong, but the situation is even more severe."
It is understood that SUNPOWER, Japan Sharp and other companies in the global photovoltaic industry with a leading technology, the photoelectric conversion rate of its high-efficiency photovoltaic cells has reached 22%, and China has stayed about 20% two or three years ago.
Gao Jifan introduced that China's photovoltaic industry has gone through a development path of low-price competition for many years, and pays insufficient attention to product quality and brand influence. “After the EU price commitment, the original defects have been highlighted. Whether China's PV industry is developing benign depends not only on the global market share, but also on the market share of PV high-end markets such as the EU and Japan.â€
In the interview, Zhongdian Photovoltaic, Changzhou Tianhe and other leading PV companies all admitted that the delay of mergers and acquisitions in China's PV industry has made it difficult for superior enterprises to win, and they have struggled near the break-even point for a long time, resulting in the difficulty of upgrading products with “less money availableâ€.
Wang Bohua, secretary general of the China Photovoltaic Industry Alliance, said that on the other hand, China's photovoltaic industry is facing a short-term market-side short-selling road. “High-performance PV products are often not cost-effective at the beginning of the market. It is necessary to cultivate the market and time in order to have market competitiveness. On the market side, the Japanese and American markets are less sensitive to price/performance ratio, and China has always been a low-price bid.â€
The government’s frequent offside production capacity is resurgent
As the photovoltaic industry began to turn losses into profits in the second half of last year, the reporters found that some local governments are eager to move, using administrative means to fuel the resurgence of photovoltaic backward production capacity.
The reporter learned from a prefecture-level city in Jiangsu that since the second half of 2013, the city has allocated financial funds to the Municipal Photovoltaic Industry Association to help the recovery of local PV companies, and then the industry associations have come to complete the procurement of complementary products in the city. Make a reward.
Wang Shijiang said that in the field of polysilicon as a raw material for photovoltaics, only 43 companies in China have maintained production last year, but only two or three of the 34 companies that have stopped production for more than a year have gone bankrupt. Recently, reporters learned in Qinghai, Sichuan, and Jiangxi that after the industry showed signs of recovery, these “discontinued and not bankrupt†enterprises were preparing for the return of work with the support of the local government.
The new energy branch of the Yellow River Hydropower Company has two 1,250-ton production lines in the polysilicon project in the Xining Economic Development Zone. Due to the small size of the single line, the production energy consumption is high. It is understood that the production cost per ton of polysilicon is 170,000 yuan, and the products are all purchased by the photovoltaic cell companies under the same Yellow River Hydropower Company for 250,000 yuan per ton.
The reporter learned that the current market price of polysilicon is only 150,000 yuan per ton. The polysilicon project of the New Energy Branch of the Yellow River Hydropower Company is clearly unable to adapt to market competition. However, it is such a polysilicon project that should have been eliminated by the market. Not only does the Yellow River Hydropower Company, a state-owned enterprise, pay the price at the bottom, but the Qinghai provincial government, where the project is located, is more coordinating bank lending, hoping to take advantage of the timing of the PV industry to turn losses. Expand production capacity.
A person from the industry said that in order to promote the resumption of the "zombie enterprise" that has been discontinued for a long time, since the second half of last year, in the case that the financial sector generally tightened the banks in the photovoltaic industry, some local governments even borrowed from the government financing platform to the bank. Transfer funds to PV companies. Such an approach has greatly reduced the effectiveness of the country's financial means to promote the merger and reorganization of the photovoltaic industry.
“In the first half of last year, a medium-sized photovoltaic cell company that had been shut down for a long time found us and wanted to sell the equipment at a low price. After the component market rebounded in the second half of the year, the company received financial support from the local government and owed the bank’s Loan, while starting to resume production." Lu Tingxiu introduced.
"China's photovoltaic industry does not need to be deeply adjusted to eliminate backward production capacity. But the reality is that the photovoltaic industry has improved slightly. Local governments have mobilized production factors such as capital and land to raise backward production capacity from local legitimate interests." Wang Shijiang believes that "there is no enterprise." Bankruptcy to capacity 'this leg, only relying on 'increased market demand', the balance of supply and demand in the photovoltaic industry will be delayed by three or four years. What is more frightening is that the industry order is still chaotic."
The industry believes that on the one hand, China's photovoltaic industry should strengthen self-discipline, adhere to market-changing decision-making, and avoid advancing for the blind optimism of local governments. On the other hand, the non-market-oriented credit situation of banks affected by local governments may be difficult to change in the short-term. In addition, the non-marketization of state-owned enterprises in the photovoltaic industry may not be able to enter a benign development track within a year or two.
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