Polysilicon
This week’s polysilicon prices had leveled to that of last week, where mono-Si dense materials and mono-Si compound feedings were respectively concluded at a mainstream price of RMB 297/kg and RMB 295/kg primarily owing to how the excessive orders from earlier have resulted in a delay of shipment to mid-August for a segment of orders. There is now zero available polysilicon stocks for sales this week, with no actual transactions, thus polysilicon prices had leveled in prices to that of last week. Some businesses have started negotiating for August orders, which are indicating a continuance of the thriving demand, and persistence in the confined supply of polysilicon alongside signs of increasing prices.
An observation on the production and operation of the polysilicon segment this week indicates that there are currently three businesses that have yet to conclude their overhauls, and one of the three businesses is expected to gradually resume operation from the end of this month, while the other two would resume normal operation during August and September respectively. Due to the current incessant information, the Ministry of Industry and Information Technology (MIIT) has been coordinating with relevant departments in order to implement interventions that would suppress the prices of multi polysilicon. With that being said, it will take some time to stipulate and execute these interventions.
Wafers
Wafer prices had risen significantly this week, where the respective mainstream price of M10 and G12 had climbed to RMB 7.53/pc and RMB 9.93/pc. Zhonghuan and LONGi had successively increased their wafer prices this week, where the former had upward adjusted RMB 0.24-0.41/pc for various sizes of wafers under an increase of roughly 4%, while the latter had increased RMB 0.24-0.25/pc for various sizes wafers under an increase of approximately 4%. The impact from the previous shortages of polysilicon is now gradually manifesting, whereas the risen raw material prices and confined wafer output have somewhat elevated the corresponding cost, with the aggressive increase of downstream cell prices also providing a support for the increment of wafer prices. It is reported that partial first-tier businesses are following LONGi and Zhonghuan in increasing their wafer prices, and most new orders will adhere to the adjusted quotations. Orders are expected to gradually finalize next week. In addition, wafer thinning has expedited in development, and LONGi had adjusted the thickness of its wafers to 155μm, which is steadily becoming the market mainstream.
Cells
Cell prices had also risen this week, where mono-Si M6, M10, and G12 cells had climbed to a respective mainstream price of approximately RMB 1.27/W, RMB 1.29/W, and RMB 1.27/W. Tongwei followed up on the price increment from the upstream wafer segment this week, and increased RMB 0.04-0.05/W in various sizes of cells under an increase of roughly 3-5%. Other businesses had successively followed the increase of prices, though a number of second and third-tier businesses are unable to finalize their orders under such high prices. In addition, mono-Si M10 cells that are currently still seeing a better demand are higher than G12 cells in prices due to market activities.
Modules
Module prices had slightly risen this week, where mono-Si 166mm, mono-Si single-sided 182mm, and mono-Si single-sided 210mm modules were respectively concluded at a mainstream price of approximately RMB 1.91/W, RMB 1.97/W, and RMB 1.97/W. No changes were seen from bifacial double glass modules, where 182 and 210mm mono-Si bifacial and double glass PERC modules were respectively risen to RMB 1.99/W and RMB 1.99/W in mainstream concluded prices.
Module makers, in the midst of apparent inflation seen from various segments of the upstream module sector, are no longer able to shoulder the cost, where phenomena such as breach of contracts and temporal order suspension are constantly occurring. Several first-tier module makers are following the price increment of the upstream sector, while partial second and third-tier makers are suspending production due to their weaker capability in obtaining orders. A segment of end demand has started subsiding under such high prices, and module prices are unlikely to drop within the short term owing to the cost pressure. N-type modules are largely stabilized, and are sitting at a mainstream market quotation of RMB 2.15-2.2/W.
Auxiliary Materials
Glass quotations were predominantly sturdy this week, where 3.2mm and 2.0mm glasses were sitting at RMB 27.5/㎡ and roughly RMB 21.5/㎡. Module makers had somewhat lowered their utilization recently, alongside a slight reduction in procurement, and the internal wait-and-see sentiment has thus amplified amidst the evident level of bargaining.
