Polysilicon
Polysilicon prices continued to drop this week, where mono-Si compound feedings and mono-Si dense materials were concluded at a respective mainstream price of RMB 97/kg and RMB 95/kg at a reduction of more than 13%. For the supply end, the polysilicon segment has been under pressure from the release of new capacity and the accumulating inventory recently. As for the demand end, the crystal pulling field has been successively lowering production amidst the continuous reduction of downstream wafer prices, and forcing the polysilicon to further drop in prices by reducing polysilicon purchases, which led to difficulties in polysilicon shipment. The on-going increase of polysilicon provision, together with the weakening market demand, are exacerbating the excess supply status, and overall prices are thus likely to remain on the descending slope.
Wafers
Wafer prices had carried on with a decrement this week, where M10 and G12 wafers were concluded at a respective mainstream price of RMB 3.5/pc and RMB 5/pc. Wafer businesses are currently ridding their inventory through production cuts and price drops. Despite a marginal reduction in inventory, most furnaces, when undertaking outsourcing projects and transforming to production of N-type wafers, had not significantly brought down the total level of wafer production. Demand for N-type wafers has somewhat risen in June alongside the release of partial new TOPCon capacity, though the excess supply of wafers will persist due to the restricted degree of total demand. Wafer prices are expected to maintain on the declining slope for the short term, and could stabilize upon a stoppage in reduction after wafer inventory is returned to a rational level.
Cells
Cell prices continued to fall this week, where M10 and G12 cells were respectively concluded at RMB 0.85/W and RMB 0.92/W, while M10 mono-Si TOPCon cells had dropped to RMB 0.95/W. For the supply end, production lines are operating at a full load, apart from some older production lines that are under transformation. In addition, new capacity of TOPCon is climbing continuously this month, which led to a slight increase of total cell production. As for the demand end, overall cell shipment has been relatively sturdy, with N-type and P-type high efficiency cells exhibiting a better demand and shipment, where low-efficiency cells are retained at sluggish demand. Cells are expected to stay on the falling slope in the short term alongside the sizable price drop of upstream polysilicon and wafers, as well as the price suppression forced by the downstream module segment.
Modules
Module prices continued to descend this week, where 182 & 210 single-sided mono-Si PERC modules were respectively concluded at RMB 1.56/W and RMB 1.58/W, while 182 & 210 bifacial double-glass mono-Si PERC modules were respectively concluded at RMB 1.57/W and RMB 1.59/W.
Prices of the PV industry chain are currently on the downfall without signs of stabilization, and module houses, in order to circumvent losses, are starting to decelerate their production. For the demand end, the end sector is on the fence towards modules, which led to a worse-than-expected level of increment in demand, and some overseas clients are digesting their module inventory whilst waiting for industry chain prices to become sturdy once again. Judging by recently opened bids, tender prices have repeatedly arrived at all-time lows, and overall module prices are dropping at an apparent rate.
In terms of auxiliary materials, glass prices had maintained stability this week, where 3.2mm and 2.0mm were respectively priced at RMB 26/㎡ and roughly RMB 18.5/㎡. The relatively stable supply of PV glass recently is prompting the new round of module production schedules to remain at a high level, and PV glass prices are thus stabilized thanks to the support from demand.
