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Constrained Wafer Supply Marginally Mitigated amidst Sluggish Market Transactions

published: 2023-03-30 14:45


Polysilicon prices continued to drop slowly this week, where mono-Si compound feedings and mono-Si dense materials were concluded at a respective mainstream price of RMB 210/kg and RMB 205/kg. This week saw fewer polysilicon transactions, where only a segment of businesses had signed for their April orders, and wafer businesses, who are sitting on sufficient polysilicon to maintain recent production, are attempting to delay their procurement demand as polysilicon prices continue to fall. Polysilicon businesses, as they gradually return to a normal inventory level, are mitigating in inventory pressure, and are now apparent in guarding their prices, where some businesses are inclined to maintain a price level no lower than RMB 200/kg.

An observation on the production and operation of the polysilicon this week indicates that a single business is still under overhaul for sub-production lines. According to the statistics of the Silicon Industry of China Nonferrous Metals Industry Association, March saw about 105.1K tons of multi polysilicon for the domestic market at a MoM increase of 7.7%, which was generated by the release of expanded capacity from Inner Mongolia Xinyuan, Daqo New Energy, Asia Silicon, East Hope, and Runergy. A total of 304K tons of multi polysilicon was produced domestically in Q1 under a YoY growth of 91.2%.


Wafer prices had somewhat fluctuated this week, where M10 had slightly risen to RMB 6.48/pc, and G12 sat on RMB 8.2/pc. LONGi announced its latest wafer prices this week, which are essentially leveled to that of last update, and were followed by some second and third-tier businesses for their quotations. The wafer market has been relatively high in operating rate recently at 80-90% that has somewhat alleviated the strain of supply. Some cell businesses are exhibiting strong reluctance towards high-priced wafer resources due to cost considerations, while several wafer businesses are concerned about accumulation of inventory in the midst of apathetic market transactions. As a result, M10 wafers were partially loosened in mainstream concluded prices this week, whereas G12 wafers had maintain stability on the other hand thanks to persisting support from the level of demand.


Cell prices were largely stabilized this week, where G12 had risen in particular. M10 and G12 cells were respectively priced at RMB 1.08/W and RMB 1.1/W. The cell segment continues to endure pressure due to the upstream industry chain, where first-tier cell businesses are able to maintain a stable operating rate attributable to the support from orders, while a small number of businesses are forced to cut down production under operating pressure, and have thus fallen below their production plans that were set in early March. Demand for G12 has been climbing as seen from recent module tenders, which also brought up procurement demand for G12 cells, though the corresponding prices are seeing a slight increase due to a slightly restricted provision that was induced by insufficient capacity from previous production schedules. Some businesses are thus currently accelerating their transition of production lines, and the aforementioned issue should be resolved soon.


Module prices continued to stabilize this week, where 182 and 210 mono-Si single-sided PERC modules were concluded at RMB 1.75/W, while 182 and 210 bifacial double-glass mono-Si PERC modules were concluded at RMB 1.77/W.

CNNP Rich Energy recently opened bids for its 6GW module tender, where P-type modules were seen with an average tender price of RMB 1.644/W. The end sector is strongly relying on declining module prices for subsequent periods, and is currently apparent in price suppression. However, the successive activation of tender projects from the end sector is leading to a gradual increase in module inquiries, and the market’s anticipation on a recovery of prosperity, together with cost pressure, are providing a support for module prices to maintain stability on a continual basis.

N-type had slightly dropped in prices this week due to a lower degree of market acceptance, despite attempted stability from some businesses. 182 and 210 N-type modules were respectively quoted at RMB 1.75-1.85/W and RMB 1.9-1.99/W.

In terms of auxiliary materials, glass prices were sturdy this week, where 3.2mm and 2.0mm variations were respectively priced at RMB 25.5/㎡ and roughly RMB 18.5/㎡. Orders for April are successively finalizing as the end of the month draws near, and the commencement of projects involving terminal stations is contributing to an improvement in demand. The robust inventory replenishment and stocking from a number of module makers have increased glass transactions, and thus support the stabilization of glass prices.

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