Polysilicon
Polysilicon prices saw a significant increase this week, where mono-Si compound feedings and mono-Si dense materials were concluded at a respective mainstream price of RMB 240/kg and RMB 235/kg. There was an apparent increase in conclusions of polysilicon this week, with a segment of orders having signed to mid-February. On the one hand, wafer inflation would introduce possibilities for an increase in polysilicon prices, while wafer businesses are maintained at a low level of production schedule and have lowered polysilicon procurement on the other hand in order to reduce their inventory. The risen downstream purchase demand for cells and modules has resulted in a slightly strained supply of wafers, followed by a return to a higher operating rate, and an increase in procurement towards polysilicon. Polysilicon, under reluctance of sales, are still climbing in prices. However, the current high inventory of polysilicon must also be taken into account at the same time.
Wafers
Wafer prices had ascended this week at nearly 30%, where M10 and G12 were respectively concluded at RMB 6.22/pc and RMB 8.2/pc. Zhonghuan first increased its prices, followed by successive increment among other businesses. TCL Zhonghuan announced its latest mono-Si wafer prices on February 4th, where P-type 182mm & 210mm wafers are now priced at RMB 6.22/pc and RMB 8.2/pc at an increase of 15.19-15.49%. The amplified production schedules from downstream cell and module segments that have ramped up wafer procurement, as well as the previous inventory of wafers that has now depleted, and the unexpected overhaul from a certain wafer business due to Chinese New Year, have resulted in slightly insufficient provision of wafers, where the mismatch in market activities has eventually triggered a considerable inflation in wafers. According to statistics, the domestic market had generated roughly 32.1GW of wafers during January under a MoM increase of 16.7%, with production of mono-Si wafers continuously rising at a MoM growth of nearly 17.2%.
Cells
Cell prices had simultaneously increased this week, where M10 and G12 were concluded at a mainstream price of RMB 1.15/W. The restricted upstream supply of wafers has relatively weakened the bargaining power of cells, and cell prices, under a large surge of cost, have followed the inflation trend. The increasing production schedules of modules are contributing to an increment of cell purchases, which smoothen cell shipment, and the downstream sector is increasing in acceptance towards the risen prices. Cell prices, as upstream polysilicon and wafer prices continue to thrive, are likely to remain on the climbing slope subsequently.
Modules
This week’s module prices had leveled to that of last week, where 182 & 210 mono-Si single-sided PERC modules were concluded at a mainstream price of RMB 1.77/W, while 182 & 210 bifacial double-glass mono-Si PERC modules were concluded at RMB 1.79/W.
Module prices were on the verge of increment this week in the midst of steadily depleting low-price resources. Some businesses, seeing how various upstream segments have risen in prices, are already attempting to increase their respective prices, though the current mediocre level of domestic end demand is not all that willing towards the inflated prices, and remains at the bargaining phase. Module prices, having previously sustained a smaller degree of decrement, are still somewhat profitable right now. N-type modules were essentially sturdy this week at a mainstream market quotation of RMB 1.78-1.9/W.
Auxiliary Materials
Glass prices were essentially leveled this week, where 3.2mm and 2.0mm glasses were respectively priced at RMB 26.5/㎡ and roughly RMB 19.5/㎡. Glass procurement, despite marginal increase in production schedules for modules in February, remains cautious, and has generated a restricted level of conclusions, followed by an increase in glass inventory. A number of businesses are now planning to increase their prices, and the bargaining between market participants would require further observations.
