Polysilicon
This week’s polysilicon prices saw a return to the inflation trend, where the mainstream concluded price has risen to RMB 302/kg in the market, while mono-Si dense materials and mono-Si compound feedings were respectively concluded at a mainstream price of RMB 302/kg and RMB 300/kg. Most long-term orders of August have been signed this week, where individual orders have even signed until mid-September. The persisting shortages of polysilicon, together with the frequent locking onto materials from the downstream sector, had ramped up the prices of polysilicon this week. Polysilicon will still increase in prices before the execution of long-term orders next month, though the degree of increment is going to gradually decelerate amidst the magnifying output of polysilicon.
An observation on the production and operation of the polysilicon segment this week indicates that two additional businesses, on top of the three businesses that had yet to conclude their overhauls last week, have now entered overhaul. According to the release of expanded capacity and overhaul-induced production reduction among various polysilicon businesses, domestic production of multi polysilicon is expected to be roughly 66K tons under a MoM growth of 13% in August. A mitigation will soon be seen from polysilicon shortages, followed by a deceleration in price increment.
Wafers
Wafer prices were largely stable this week, where M10 and G12 were respectively concluded at a mainstream price of RMB 7.53/pc and RMB 9.93/pc. Businesses have successively followed up with the wafer prices adjusted by LONGi and Zhonghuan last week, and low-price resources are gradually diminishing in the market. Cell businesses are persisting in wafer demand recently, and are more lenient towards risen wafer prices, which led to more concluded orders this week. Due to restricted supply of polysilicon, two first-tier wafer businesses had lowered their operating rate to 70% and 75% this week, while integrated businesses are maintaining an operating rate of roughly 70-80%, whereas other businesses are sitting at 60-70%. In addition, wafer businesses, in order to avoid risks of declining polysilicon prices, are prioritizing on reducing their inventory between August and September.
Cells
This week’s cell prices had leveled to that of last week, where mono-Si M6, M10, and G12 were respectively concluded at a mainstream price of approximately RMB 1.27/W, RMB 1.29/W, and RMB 1.27/W. Second and third-tier businesses have been following up with the cell quotations altered by Tongwei last week, with partial orders gradually finalizing, though there is a segment of orders that are still under apparent bargaining. A number of first-tier module makers, due to exorbitant prices and decelerated end demand, have started reducing their production in order to lower their demand for cells, which forces the upstream sector to lower its prices. Currently, the bargaining between cell businesses and module makers is in full swing, and cell businesses may bring down their utilization subsequently.
Modules
Module prices were stabilized this week. Mono-si 16mm modules were concluded at a mainstream price of about RMB 1.91/W, while mono-Si and single-sided 182 & 210mm modules were concluded at roughly RMB 1.97/W, whereas the 182 & 210mm bifacial double-glass mono-Si PERC module is now at RMB 1.99/W.
The constant increase of prices from the upstream sector of the supply chain recently has further inhibited end demand, and more project providers are now on the fence towards market development, who had focused on delivering previous orders this week, with fewer new orders signed. Related departments are also actively coordinating pertaining to relevant issues on market pricing, and are hoping to achieve unimpeded release of installation demand through price adjustments. For N-type modules, the mainstream market quotations are currently at RMB 2.15-2.2/W.
In terms of auxiliary materials, there were no apparent fluctuations from glass prices this week, where 3.2mm and 2.0mm glasses sat at a respective mainstream price of RMB 27.5/㎡ and roughly RMB 21.5/㎡. The volume of 2.0mm glass orders has elevated significantly. End demand is exhibiting slight insufficiency under the risen prices of the PV industry chain, and first-tier module makers have started reducing their utilization, which led to a marginal reduction of total orders signed from the latest round. With that being said, market supply continues to increase, and is thus not providing enough support for the prices.
Film prices had somewhat dropped this week. Module makers are gradually subsiding in their demand for films due to a reduction in operating rate, which also resulted in the declining prices of EVA particles. Film businesses, hoping to reinforce cash flows, have dropped their prices in order to facilitate shipment. Prices are expected to remain on the weaker end in August.
Backplane prices had also exhibited a descending trend this week, where KPC and CPC backplanes had dropped to RMB 12.5/m2 and RMB 10.2/m2 respectively. The reduction in module production has also led to a steadily declining demand for backplanes, where the abating procurement from several module makers had also brought down the prices of backplanes. Backplane prices are estimated to remain sluggish in August.
