Polysilicon carried on with a minor inflation tendency this week, with the overall quotation of mono polysilicon sitting at roughly RMB 244/kg. Having entered the negotiation period for March orders this week, a number of businesses have completed signing their long-term orders, while individual businesses are also planning to complete their signing on excessive orders within two weeks. The release of expanded capacity has been worse than expected for polysilicon businesses, and the successive overhauls among individual businesses are also impeding output. The wafer end is currently maintained on a high level of operating rate, and remains on an obstinately large degree of willingness towards polysilicon procurement. Polysilicon prices, upon excessive demand, had continued to surge this week.
An observation on the production, operation, and shipment of the polysilicon sector indicates that the slow release of expanded capacity among polysilicon businesses, together with individual businesses’ successive overhauls, and the reduced days in February, have yielded a lower-than-expected increment in the production of multi polysilicon. Domestic polysilicon production is expected to be approximately 53.3K tons in February under a mere MoM increase of 0.6% from 52K tons, and the additional volume had primarily come from the expanded capacity of Yongxiang and Daqo New Energy.
Wafer prices continued to climb this week, with various degrees of inflation seen in different sizes. Most wafer businesses followed up on the increase of wafer quotations by leading wafer businesses last week, with successively concluded quotations. The mainstream concluded prices for M6, M10, and G12 have risen to about RMB 5.4/pc, RMB 6.5/pc, and RMB 8.7/pc (2.35%) respectively. Gradual initiation of end projects has stimulated cell orders and elevated wafer demand. A number of businesses have lowered their operating rate due to the pandemic, and the addition of insufficient polysilicon provision has also restricted output. The excess demand has led to an inflation as a result.
Cell prices had slightly fluctuated this week, where M6 had risen to roughly RMB 1.1/W in mainstream concluded price, while M10 and G12 were respectively concluded at approximately RMB 1.12/W and RMB 1.13/W. Tongwei had adjusted its cell prices by an increase of 1.8% for single-sided/bifacial 166, 182, and 210 mono-Si PERC cells, which are now at RMB 1.11/W, RMB 1.14/W, and RMB 1.14/W respectively. Robust downstream demand and fastened module production have elevated cell demand. The market had started negotiating for March orders this week, and cell businesses are attempting to increase their quotations in order to transfer cost pressure, though acceptance remains low from module makers. The bargaining between upstream and downstream sectors will continue within the short term.
Module prices were largely stabilized this week, where mono-Si 166, 182, and 210 modules were respectively concluded at approximately RMB 1.85/W, RMB 1.88/W, and RMB 1.88/W in mainstream prices. The domestic market demand primarily comes from distributed projects in the current stage, while tenders for large ground power station projects are also amplifying in quantity. Partial businesses have yet to increase their module prices upon the conclusion to the hoarding rush in overseas markets during late-March due to persistently ambiguous end demand. Module tender prices had steadily risen in February, with distributed module prices now generally exceeding RMB 1.9/W. The intensity of market orders remains unsatisfactory amidst gradually increasing prices in various upstream segments and auxiliary materials of modules, and the end sector is upholding a strong extent of wait-and-see sentiment. Several module makers have planned to lower their utilization and bargain with both upstream and downstream sectors.
In terms of auxiliary materials, glass quotations remained sturdy on the whole amidst ordinary market demand this week. 3.2mm and 2.0mm glasses were concluded at respective mainstream price of roughly RMB 27/㎡ and RMB 21/㎡. Due to the inflation of soda ash, the profitability of PV glasses has been further inhibited.