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Industry Chain Prices Now Dropping amidst Initiation of Year-End Inventory Reduction

published: 2022-12-08 15:25


Polysilicon prices were unable to suspend in reduction this week, where mono-Si compound feedings and mono-Si dense materials were respectively concluded at RMB 296/kg and RMB 292/kg under an approximate drop of 2.01-2.31% compared to that of last week, with the average now arriving at below RMB 300. A segment of signed polysilicon orders for December is still currently on-going, where the accumulation of wafers and the decrement of utilization have drastically lowered the activeness towards procurement of multi polysilicon this month among wafer businesses. Polysilicon businesses, under the current price level, remain relatively profitable, and are mostly maintaining a high degree of production, whereas the constantly ramping up of new capacity that has led to an apparent growth of polysilicon output has somewhat depleted the extent of bargaining power. Prices are still likely to fall within the short term.


Wafer prices continued to loosen this week, where M10 and G12 were respectively concluded at a mainstream price of RMB 6.8/pc and RMB 9/pc under an enlarged reduction compared to that of last week at 3.23-4.23%. Despite successive conclusions of orders this week, overall market quotations have yet to manifest signs of stabilization, where wafer inventory has been constantly rising, and businesses are compromising on a larger degree of prices in order to seize orders. First-tier businesses are comparatively centralized in quotations, while second and third-tier businesses are relatively chaotic in prices. Mainstream quotations of the wafer market remain unstable, and overall quotations are continuously dropping. For the supply end, domestic and overseas installation demand indicates that most businesses have started lowering their operating rate and decelerating capacity ramp-up in the hope of slowing down the marginally excessive supply status. On the whole, wafers will maintain on an excess supply for the short term, and prices are expected to somewhat drop accordingly.


Cell prices had dropped this week, where mono-Si M6, M10, and G12 were respectively concluded at roughly RMB 1.28/W, RMB 1.33/W, and RMB 1.32/W under an approximate drop of RMB 0.01/W compared to that of last week. Cell prices are now implicated by the continuous loosening of upstream industry chain prices, where second and third-tier businesses are constantly lowering their quotations, and module makers, who are looking to drop their operating rate amidst the gradually weakening end demand with the end of the year approaching, have descended in willingness towards cell procurement. As a result, the constrained supply of large-sized cells has improved, and cell prices have been further deprived of momentum due to the depletion of cost and demand.


Module prices started to fall back to within RMB 2 this week. Mono-Si 166 modules were concluded on a mainstream price of roughly RMB 1.89/W this week, while mono-Si single-sided 182 & 210 modules were concluded at RMB 1.95/W, where bifacial double-glass mono-Si 182 & 210 PERC modules were concluded at RMB 1.98/W.

The generally fallen upstream industry chain prices have yielded space for decrement in module prices, and module makers are steadily enlarging their bargaining when negotiating for orders. A number of module makers, due to the slow progress of end domestic installations and the sluggish overseas demand, have dropped in utilization for December, as well as lowered their prices in order to reduce inventory amidst the constant market rumor pertaining to a severe accumulation of module inventory. N-type modules now sit a mainstream market quotation of RMB 2.08-2.12/W after a small reduction this week.

In terms of auxiliary materials, glass prices had slightly dropped this week, where 3.2 & 2.0mm glasses are now respectively priced at RMB 27.5/㎡ and roughly RMB 20.5/㎡. Due to the partially dawdling end installations, module makers have dropped in operating rate by various extents during December, and have weakened in demand by implementing purchases according to actual needs, followed by a slight fallback in order prices due to the consecutively increasing provision.

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