Recently, PV glass manufacturers gathered to discuss the current supply-demand imbalance. The industry is facing increasing harm from intensified "involution-style" competition. Amid weakening demand, supply-side overcapacity continues to grow. To avoid further intensifying competition and a downward spiral in the market, most glass manufacturers plan to reduce production starting in July, with an expected cut of up to 30%.
In fact, production cuts had already begun in June. According to SMM statistics, a total capacity of 3,850 tons/day was taken offline or idled in June, with an additional 3,020 tons/day halted due to blocked furnace openings. Recently, another furnace with a capacity of 650 tons/day also began reducing output. The supply has declined rapidly, mainly due to sluggish demand. In recent months, domestic module production has continued to fall, causing a sharp drop in demand. However, supply increased as new furnaces were ignited earlier, leading to a supply-demand mismatch and rising inventories. According to SMM, inventories at some glass manufacturers have reached nearly 45 days, approaching full capacity.
Under the pressure of high inventories, glass prices have begun to fall and have dropped below production costs—one of the main drivers behind this round of production cuts. Initially, companies planned to reduce output by only around 10%, but this scale proved insufficient to resolve the supply-demand imbalance. Therefore, leading manufacturers now plan to increase the reduction to 30%. Some companies have already begun planning the timing of further output cuts. Although there are more working days in July, the expanded production cuts are expected to result in the first monthly output decline since the Chinese New Year, with the estimated domestic photovoltaic glass supply falling to around 45 GW.
Source：https://mp.weixin.qq.com/s/BbcBxEFSZnxu1iJB1wLaWA
