2/18/2012

Poly prices

Did poly prices bottomed?  Or do we expect another leg down?

Current spot prices seem to have stabilized around $30/kg.  This caused a mini-rally in some solar stocks (until German tariff reduction news killed it).  However, some analysts (e.g. Citi) think another leg down is likely.  They estimate REC cash cost at FBR (newest) facility at around $13/kg based on latest data.  This is better than current cost and volume leader, GCL-Poly.  Latest GTM research suggests that panel prices in 2012 will drop from $0.90/w to $0.70/w, as lower poly prices work their way though the supply chain (80% of contracts are not spot, but will be renegotiated closer to spot).  They estimate poly cost of $20/kg and suggest that prices will head in that direction.  Biggest will survive: GCL Solar, REC, OCI, Tokuyama, Hemlock and Wacker.

1/10/2012

Ethanol subsidy gone... what's next?

Ethanol subsidy to refiners has expired.  Tariff on imported ethanol also expired.  The requirement to blend ethanol with gasoline remains.  What does this mean to ethanol producers in the U.S.?  Should we expect a spike in imported ethanol?

1/03/2012

Sovereign refinancing needs in 2012

Country    2012 Bond, Bill Redemptions ($)      Coupon Payments
Japan             3,000 billion                   117 billion
U.S.              2,783 billion                   212 billion
Italy               428 billion                    72 billion
France              367 billion                    54 billion
Germany             285 billion                    45 billion
Canada              221 billion                    14 billion
Brazil              169 billion                    31 billion
U.K.                165 billion                    67 billion
China               121 billion                    41 billion
India                57 billion                    39 billion
Russia               13 billion                     9 billion