Tier-one China-based solar wafer makers have decreased shipments to control supply in an attempt to increase prices later in January, according to industry sources in Taiwan.

In line with the price increase of 5-10% aimed by Taiwan-based solar cell makers, China-based firms hope to seize the opportunity and increase prices, the sources said.

But tier-one solar wafer makers in China have dismissed rumors of limiting supply to increase prices.

Solar material prices in China are expected to increase due to the anti-dumping and anti-subsidy investigation taken up by China's government as market observers believe the government will announce a preliminary result of the investigation in first-quarter 2013 and the possible punitive tariff on foreign imports will help domestic firms increase prices.

Despite the hope for a price increase, solar demand has been hard to predict. In addition, not all firms want to increase prices as some of them do not have good order visibility.

Solar incentive cuts in Europe are likely to continue while demand in China is likely to benefit domestic firms only. Demand in the Japan market in 2012 has been estimated at 2.5GW, which is only 30% of Taiwan's annual solar cell output.