Analysis: Global solar sector faces fresh cell glut

The global solar industry is likely to face a fresh sector trough if the recent European demand feast ahead of subsidy cuts turns into a famine next year.

Excess stocks of module-cells weighed on firms such as First Solar, Q-Cells, Suntech and Solon after a financial crisis-fueled sector bust in 2008, when prices slid 50 percent, and the same could happen again.

After piling up billions in losses during 2009, the sector has been booming again this year, as customers bring forward orders ahead of subsidy cuts in Germany, the world's biggest solar market.

Global players around the world have been massively ramping up capacity to satisfy that strong demand, but the move could prove fatal for most module makers since exposure to Germany is usually very high.

Source: Reuters