the Americans really didn't help the situation either by raising the drawbridge last year, resulting in even more of the chinese over capacity ending up being dumped in Europe rather than being split more evenly across both continents.
This graph also demonstrates the issue last year quite well, with a huge level of demand in Q4 of 2011 that was never matched in any quarter in 2012, but manufacturers ramped up production in Q3 in anticipation of the expected surge in demand in Q3 and 4 that had been there for the last few years, only to find that it didn't happen at all in Q3, which was the lowest demand out of all 4 quarters, and Q4 was 2GW lower than Q4 in 2011, so the manufacturers ended up stuck with massive stock piles of unsold panels, while wholesalers around the world reduced their stocking levels to exacerbate the problem for the manufacturers.
This graph also demonstrates the issue last year quite well, with a huge level of demand in Q4 of 2011 that was never matched in any quarter in 2012, but manufacturers ramped up production in Q3 in anticipation of the expected surge in demand in Q3 and 4 that had been there for the last few years, only to find that it didn't happen at all in Q3, which was the lowest demand out of all 4 quarters, and Q4 was 2GW lower than Q4 in 2011, so the manufacturers ended up stuck with massive stock piles of unsold panels, while wholesalers around the world reduced their stocking levels to exacerbate the problem for the manufacturers.