Weekly Outlook for Photovoltaic Glass

On the supply side, as of June 3rd, the operating capacity of domestic photovoltaic glass is 121,480 tons/day. Last week, one photovoltaic glass production line was ignited and put into production, with no production lines starting to produce glass. There are currently no plans to ignite production lines this week, and the production capacity will remain stable. In addition, it is expected that 1-2 production lines put into production earlier will start to produce glass at the beginning of this month, and actual output will continue to increase. On the demand side, current domestic and foreign module demand is weak, coupled with international policy reasons, the start of new photovoltaic module projects is not high in the new month, and the willingness to purchase photovoltaic glass is not strong. On the inventory side, due to the continuous increase in supply and weak demand performance, the inventory of photovoltaic glass manufacturers continued to increase last week. In terms of cost and profit, due to the rebound in the spot price of soda ash and the weakening of photovoltaic glass prices, the industry's gross profit margin has continued to decline and has dropped to around 19%, lower than the same period in previous years. Overall, the market has started to negotiate new prices for June this week. Due to the low start of new photovoltaic module projects in the new month and the weak willingness to purchase photovoltaic glass, at the same time, the supply of photovoltaic glass continues to increase, the price of photovoltaic glass in the new month is under pressure, and it is expected that the price of photovoltaic glass will continue to decline in June.

Supply Side

As of June 3rd, the domestic photovoltaic glass operating capacity stands at 121,480 tons/day. Last week, one photovoltaic glass production line was ignited and started production, with no production lines starting to produce glass. There are currently no plans to ignite production lines this week, so the production capacity will remain stable. Additionally, 1-2 production lines that were put into production earlier are expected to start producing glass at the beginning of this month, and the actual output will continue to increase.

Demand Side:

Currently, the demand for photovoltaic modules both domestically and internationally is relatively weak. This, compounded by international policy factors, has led to a low start of new photovoltaic module projects for the month, resulting in a diminished willingness to purchase photovoltaic glass.

Inventory Side:

Due to the continuous increase in supply and the weak demand, the inventory of photovoltaic glass manufacturers continued to rise month-on-month last week.

Cost and Profit Margin:

Recently, the industry's gross profit margin has been declining steadily due to the rebound in the spot price of soda ash and the weakening of photovoltaic glass prices. It has now fallen to around 19%, which is lower than the same period in previous years.

Trade Side:

Influenced by the strong demand for photovoltaic installations overseas, the export of photovoltaic glass from our country has continued to grow this year. From January to April, the export volume of photovoltaic glass increased by 13.8% compared to the same period in 2023.

Source：ORIENT SECURITIES