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Comprehensive Drop in Industry Chain Prices as Panic Spreads in Market

published: 2022-12-29 17:51


Polysilicon prices had dropped significantly this week, where mono-Si compound feedings and mono-Si dense materials were respectively concluded at RMB 198/kg and RMB 195/kg under an approximate reduction of nearly 24% compared to that of last week, where mainstream concluded prices have now rapidly fallen below RMB 200/kg. As the end of the month approaches, procurement had slowed down this week under a stronger wait-and-see sentiment due to the sluggish downstream market demand and inverted cost, and polysilicon had manifested an apparent excess supply in December under a sizable increase in supply that was met with impeded demand. Several polysilicon businesses had not significantly adjusted their quotations this week, though they had offered a larger room for compromises during negotiations, where some businesses had concluded partial transactions with lower prices in order to eliminate inventory, which led to the overall chaotic market concluded prices. Polysilicon is still likely to drop in prices with the further increment of inventory.


Wafer prices had remained on the declining slope this week, where M10 and G12 were respectively concluded at a mainstream price of RMB 4.9/pc and RMB 6.6/pc under a further expansion in WoW depletion to around 9.5%. The two leading wafer businesses had successively announced their latest list prices at a maximum reduction of 27% that was followed by other wafer businesses. Quotations of the current wafer market remain relatively disrupted, with a lower level of transactions. The constantly rising inventory in the wafer market recently, together with businesses’ shipment strategies towards the downstream market, have led to a sense of panicking in the wafer market, where daily changes in wafer prices are now considered as a normal phenomenon, though prices have yet to stabilize under the persistently sluggish willingness among downstream purchases from the mentality regarding implementing procurement when there is a rise, not a fall, in prices, as well as the decelerating demand, and may still decline afterwards.


Cell prices continued to drop this week, where M10 and G12 cells were concluded at a mainstream price of roughly RMB 1/W under a WoW decrement of 13%. Tongwei, after the cliff fall of upstream wafer prices last week, announced its latest list prices of cells, where mono-Si 150μm PERC 182 and 210 cells are quoted at RMB 1.07/W and RMB 1.06/W under an apparent drop of 19.55% and 20.30% respectively compared to their previous quotations at RMB 1.33/W (October 25th). The constant depletion of wafer prices has introduced additional space in forfeiting profit for cells, which are comparatively advantageous in profitability due to a smaller degree of price reduction compared to that of polysilicon and wafers. In terms of orders, the downstream sector has begun successive stocking this week after the drastic plummeting of cell prices, with no major differences between concluded prices and quotations. Cell prices, in the midst of declining downstream demand and the spreading of market panicking, are still likely to fall subsequently.


Module prices had slightly dropped this week, where mono-Si 166 modules were concluded at a mainstream price of roughly RMB 1.87/W, while 182 and 210 mono-Si single-sided modules were concluded at RMB 1.89/W, whereas 182 bifacial double-glass mono-Si PERC modules sat at RMB 1.91/W, and 210 bifacial double-glass mono-Si PERC modules were priced at RMB 1.92/W.

Module quotations started to loosen this week after the successive price drops from the upstream industry chain, though the degree of reduction has been relatively small compared to that of upstream sector due to how the period between Christmas and the arrival of Chinese New Year serves as an off season for the PV industry on one hand, and that the sizable fluctuations of industry chain prices recently has aggravated end buyers’ wait-and-see sentiment on implement procurement where there is a rise, not fall, in prices on the other hand. Some module makers commented this week on having yet to complete their delivery of orders as the end of the month approaches, and are currently accelerating the process. A number of makers are ready to go on holiday with the arrival of the end of the year, and are not expected to see any significant movement before Chinese New Year. N-type modules had slightly shaken up this week at a mainstream market quotation of RMB 1.97-2.07/W.

In terms of auxiliary materials, there were no considerable fluctuations in glass quotations, where 3.2mm and 2.0mm glasses were respectively concluded at a mainstream price of RMB 27.5/㎡ and RMB 20.5/㎡. Glass businesses have been receiving new price inquiries as the end of the month draws near, though the level of purchase intention has been rather low, with more inquiries and fewer transactions seen.

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