Apparent Bargaining between Various Downstream Segments amidst Continuing Polysilicon Inflation

published: 2022-04-14 16:48 | editor: | category: Price Trend

Polysilicon

Polysilicon prices had carried on with a marginal increment this week, with overall mono polysilicon quotations sitting at roughly RMB 251/kg. Most polysilicon businesses had signed for all April orders earlier this month, and focused on executing previous orders this week, with individual businesses seeing conclusions in partial excessive and sporadic orders that once again ascended polysilicon prices. Polysilicon businesses are currently falling behind the anticipated progress in the release of expanded capacity, while imports are also obstructed by polysilicon transportation, and operating rate remains high due to the higher prices of wafers. Demand for polysilicon has risen when coupled with the gradually releasing new capacity, where the periodic shortages will persist within the short term.

An observation on the production, operation, and shipment of the polysilicon sector indicates that a number of polysilicon businesses will be entering overhaul between April and May, and two polysilicon businesses would increase the release of their expanded capacity at the same time. Domestic polysilicon production of April is expected to level to that of March. Polysilicon will remain constrained in supply under a minor inflation tendency in April considering how the wafer end is lowering production and gradually releasing expanded capacity due to the pandemic.

Wafers

Wafer prices remained largely stable this week, with a small increase seen in M10. M10 and G12 were concluded at a respective mainstream concluded price of roughly RMB 6.78/pc and RMB 9.05/pc. Longi had once again increased its 165μm M10 wafer price to RMB 6.82/pc on April 13th, which is an increment of approximately of RMB 0.12 and 1.79% from RMB 6.70/pc on March 25th. The market is now successively accepting the general inflation of wafer prices that started since last week, though the market is still in the midst of bargaining with no apparent increase in purchase demand as some cell businesses are not liking the risen prices. Raw material transportation, as well as wafer production and shipment, have received various extents of impact from the pandemic, followed by a slightly confined supply of wafers. Partial wafer businesses have elevated their demand for M10 cells and wafers in order to ensure a certain level of operating rate. M10 prices have thus risen marginally.

Cells

Cell prices had stabilized this week, with mono-Si M6, M10, and G12 cells sitting at a respective mainstream concluded price of roughly RMB 1.11/W, RMB 1.15/W, and RMB 1.16/W. The upstream industry chain has initiated a new round of inflation, and cell businesses had yet to adjust their prices this week, where strong market bargaining sentiment has now become apparent. According to market feedbacks, cell quotations have now arrived at the critical cost line for the module sector, and cell prices have temporarily stabilized taking into account the degree of acceptance from downstream modules.

Modules

Module prices had slightly fluctuated this week, with an increase seen in mono-Si 210mm modules. Mono-Si 166mm, 182mm, and 210mm modules were respectively concluded at a mainstream price of roughly RMB 1.87/W, RMB 1.89/W, and RMB 1.91/W this week. The upstream industry chain and auxiliary materials of modules have been pulling their prices up recently, where the attempt in raising quotations by several module makers has not been widely accepted by the end sector, which explains the on-going bargaining. The demand for mono-Si 210mm modules has been relatively well due to market preferences, followed by rising concluded prices on top of higher acceptance of elevated prices. Module prices have now arrived at a high interval, where a number of centralized power station projects are in the midst of bargaining, while distributed PV projects are likely to result in new high in installations owing to a higher degree of acceptance on module prices and an excellent demand.

In terms of auxiliary materials, glass prices had remained sturdy this week, with 3.2mm and 2.0mm variations sitting at a respective mainstream price of approximately RMB 28/㎡ and RMB 21/㎡. Most businesses had signed for April orders in the beginning of this month. Market transactions were relatively small this week, with no apparent fluctuations in market quotations.

(Image:Flickr/Bureau of Land Management CC BY 2.0)

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