From Tech Trader Daily:
Chinese solar vendors are offering modules for prices far below what most investors likely suspect, according to Hapoalim Securities analyst Gordon Johnson.
In a research note today, Johnson asserts that some of his “most trusted industry contacts” say that companies like Yingli (YGE), Suntech (STP) and Trina Solar (TSL) are offering modules for sale at $1.70-$1.80/watt, or 1.21-1.28 Euros/watt. He notes that at the recent Intersolar conference, the talk was that solar modules were priced in the 1.60-1.70 Euros/watt range.
Johnson contends that U.S. investors may be underestimating the ability of Chinese solar module companies to significantly lower their non-silicon costs - specifically, by cutting wages. He writes that “we are hearing that Chinese solar module factory workers are willing to work for little-to-no-pay” in order to improve their company’s competitiveness and “as a matter of national pride.” According to Johnson, volumes available at the lower price levels is effectively unlimited....MORE