Solar product prices have increased recently

    Solar product ASPs along the entire industry chain have risen for three straight weekssince October. According to global ASP data published by PVinsights, polysilicon priceshave risen 7.9%, multi-wafer/cell prices have risen 20.4%/14.4% and mono-wafer/cellprices have risen 11.3%/14.0% since end-September.

    Recent price rise is the result of multiple drivers

    Main reasons behind recent price rise: 1) Prices bottomed: After the installationuptrend ended in H116, ASPs declined across the board since July,polysilicon/wafer/cell/module ASPs retreated 24.0%/35.4%/30.8%/19.8% in Q316, insome cases falling below the cash cost of tier 1 manufacturers, and gross profit isbasically nil for tier 2 manufacturers. 2) Demand has picked up since October: afterNDRC released a Request for Comment on 29 Sept to cut the PV tariff, which set theprice adjustment date to 30 June or 30 Sept 2017, stocking and order taking havestarted since October, targeting a new installation increase. 3) Supply is shy ofdemand in the near term: Upstream