Polysilicon
Polysilicon quotations remained stable on the weaker end this week, with the pressure of negotiation gradually transmitting to the polysilicon market subsequent to the price reduction in the downstream market. There had been fewer new orders this week as several polysilicon businesses had signed for their December orders a little while ago, though the increasingly evident bargaining between upstream and downstream sectors, as well as postponed and weakened inventory pull from the downstream sector, are constantly exacerbating the wait-and-see sentiment within the market. In terms of quotations, there were no apparent fluctuations among overall polysilicon prices, where the average price of mono polysilicon is maintained at RMB 271/kg, with market quotations sitting at RMB 265-275/kg. Overseas markets are seeing a recent price of approximately US$36.9/kg due to stabilized polysilicon quotations and exchange rates.
An observation on the production, operation, and shipment status of the domestic polysilicon sector indicates that one out of twelve operating businesses has yet to resume full load production. Operating businesses are producing under a high utilization rate, while the successive production of new polysilicon capacity in the country will also contribute to a MoM increase in production during December. A small number of polysilicon businesses are expected to slightly forfeit their profits with partial wafer businesses suppressing prices by decelerating the pace of inventory pull, and upstream silicon powder falling back in prices. However, year-end polysilicon orders have now arrived at a full load state, where market supply has been essentially digested by downstream purchases, and a sizable fall back in overall prices is proven to be difficult for the polysilicon market.
Wafers
Wafer quotations continued to fluctuate this week, where M10 wafers had slightly fallen back. Mono-Si wafers had slightly loosened in quotations alongside the elevated provision of mono-Si M10 products in the market, though the quotation interval has been slightly downward adjusted to RMB 6.72-6.81/pc due to a small level of concluded transactions this week, and the unchanged quotations from leading businesses.
An observation on the production, operation, and shipment status of the domestic wafer sector indicates that integrated businesses are maintained at a relatively high level of utilization rate so as to accelerate the pace of downstream shipment. First-tier businesses are adhering to a comparatively lower utilization rate after taking into account factors such as cost and the future supply structure, while second and third-tier businesses who are constantly accumulating inventory due to impeded shipment are exhibiting passiveness during bargaining with the downstream sector.
Cells
Cell quotations had slightly loosened this week primarily owing to the fallen back prices of multi-Si cells. Certain cell businesses, forced by downstream pressure, have slightly compromised on the quotations for mono-Si products due to the reduction of upstream wafer prices and the demand of businesses that has now shifted to large-sized products, though apparent fluctuations were not seen as a result. Mono-Si M6 cells are sitting a mainstream price of RMB 1.08-1.1/W, while mono-Si M10 and G12 have now arrived at RMB 1.15/W and RMB 1.12/W in respective mainstream price. Partial cell businesses have significantly depleted in the shipment of sporadic cell orders recently, where static regarding a price reduction is gradually manifesting under a weaker purchase sentiment from the downstream sector. In addition, signals surrounding a decrease in tariffs have been circulating, though it will take a while before arrival at the domestic market.
The domestic and overseas mainstream prices of multi-Si cells have fallen to RMB 0.89/W and US$0.124/W respectively from sustaining a corresponding level of pressure under a sluggish degree of demand yielded by the obstinately high upstream cost.
Modules
Module quotations had carried on with a fluctuating status this week, followed by a marginal fall back in quotations of large-sized modules. Most module makers had focused on executing previous orders this week, and mainstream businesses had yet to make any adjustments to their quotations. A small number of module makers are maintaining on stable quotations so as to seize orders, though a reduction of roughly RMB 0.02/W was seen from a small loosening during transactions. 182mm and 210mm modules have now dropped to RMB 2.08/W and RMB 2.09/W in respective quotation. Despite constant releases of signals pertaining to loosened quotations recently, the latest announcement regarding a decrement in tariffs has provided advantages to the module market and a certain extent of support for quotations.
The glass sector had gradually stabilized this week, with no apparent changes to mainstream market quotations. The previous round of price squeeze from module makers, coupling with the tenaciously high cost of raw materials, have somewhat subdued the profitability of PV glass businesses, though the ramification is still within a tolerable range. 3.2mm and 2.0mm glasses are currently at RMB 26-28/㎡and roughly RMB 19-23 respectively.