Module Makers May Continue to Reduce Operating Rate Amidst the Continuously Surging Polysilicon and Wafer Prices

published: 2021-06-03 15:02 | editor: | category: Price Trend


Polysilicon quotations continued the inflation trend this week, where the mainstream quotations for mono and multi polysilicon sat at RMB 200-225/kg and roughly RMB 80-125/kg respectively. With the delivery of the orders for May now concluded, most polysilicon businesses have made new changes to the pricing of June, and regular clients are also hit with the new round of inflation. Most orders were concluded at above RMB 200/kg this week, where mono polysilicon feeding was also seen at a concluded price of RMB 230/kg, with no signs in stoppages. However, owing to the dry spell in Yunnan and the recovery time needed after the earthquake, the demand for polysilicon may temporarily slow down in June, and is likely to stabilize the prices of polysilicon in June for a short period of time. Price bargaining might initiate once again in July under an increasing quantity of businesses going into overhaul, as well as the gradual release of new capacity for wafers. 

An observation on the production, operation, and shipment status indicates that a new business has entered overhaul this week apart from the two polysilicon businesses in Xinjiang, and there will be a constant stream of businesses entering overhaul starting from June. The recent security inspection in the country has resulted in operation suspension for partial polysilicon businesses, and it remains likely for other businesses to halt operation and implement overhaul subsequently. 


Wafer quotations continued to rise this week, and the mainstream quotation of multi-Si wafers has now arrived at RMB 2.37-2.63/pc, where the mainstream quotations for G1 170μm and M6 170μm are sitting at RMB 4.79-5.03/pc and RMB 4.89-5.13/pc respectively. 

Wafer quotations carried on with surging trend this week, where the two leading wafer businesses successively announced new list prices, and the upstream prices of polysilicon remains as the primary reason behind the incessant rise of wafer cost. In terms of supply and demand, the output of wafers will be restricted by the short supply of polysilicon, aftershock, and the ration of power supply during the dry spell in Yunnan, and the temporal shortages in crucibles and thermal fields will also contribute to the severe scarcity of wafer resources. Wafer quotations are not yet stabilized under fluctuating polysilicon prices and unabated downstream procurement. 


Cell quotations had slightly risen this week, with the mainstream quotation of multi-Si cells sitting at RMB 0.79-0.89/W. Mono-Si G1 and M6 cells are now at RMB 1.06-1.15/W and RMB 1.03-1.1/W in mainstream quotations, whereas the mono-Si M10 and G12 cells have arrived at RMB 1.03-1.1/W. 

Cell quotations were marginally adjusted this week, especially with how the gradually diminishing bottom resources are comprehensively elevating the basic prices, and a significant adjustment was not seen in high-level prices. However, the cell sector may face a new round of inflation after the conclusion of the SNEC Expo. Pertaining to orders, downstream procurement has decelerated, which resulted in fewer new orders for June. The cell sector is starting to perceive the pressure coming from the downstream sector, and another expansion to the degree of inflation may contract the downstream demand by a further extent, though partial businesses will no longer be able to shoulder the risen cost brought forward by upstream polysilicon if prices are maintained the same, where a number of businesses have commented on the predicament. 


Module prices had temporarily stabilized this week. Module makers are commenting on the struggling status, where the upstream industry chain continues to elevate the prices, though end demand is now shrinking progressively, and the installation rush of 630 has yet to manifest. Module makers are adhering to a wait-and-see attitude by having yet to announce the pricing for June, and the status quo may further improve after the SNEC Expo. A lack of inflation momentum in prices will further reduce the operating rate and the annual shipment target. 

Glass quotations maintained on a weaker end this week. The market of auxiliary materials has not exhibited apparent fluctuations recently, whereas the fewer actual orders and slow transactions this week were due to the uncertain end demand.

(Image:Michael Mees via Flickr CC BY 2.0)

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