Silicon wafer prices remained stable this week. The average transaction price of N-type G10L monocrystalline wafers (182*183.75 mm/130 μ m/256mm) remained at RMB 1.12/piece, unchanged from the previous month. The average transaction price of N-type G12R monocrystalline wafers (182*210mm/130 μ m) remained at RMB 1.25/piece, unchanged from the previous month. The average transaction price of N-type G12 monocrystalline wafers (210*210 mm/150 μ m) remained unchanged at RMB 1.6/piece, same as the previous month.
On the supply side, according to the statistics of Silicon Industry of China Nonferrous Metals IndustryAssociation, China wafer output in July was 50.4GW, down 1.8% month-on-month, and the domestic wafer output from January to July accumulated 416.15GW, up 37.2% year-on-year. Specifically, the increase in July came from first-tier enterprises. LONGi began to increase production at the beginning of the month, and TCL Zhonghuan maintained full production. The reduction in July mainly came from integrated enterprises and specialized enterprises. Some small enterprises were forced to reduce production significantly, and the industrial price war was hot. According to the production schedules of various companies, wafer production is expected to increase to 51-52GW in August, and the industry has a recovery trend due to the easing of inventory pressure.
On the demand side, according to the statistics, China cell production in July was 49GW, down 5.8% month-on-month. Domestic module production in July was 49GW, down 4% month-on-month. On the cell side, the price of M10 mono TOPCon cells dropped to RMB 0.285/W, a drop of 5%. The cell link suffered serious blood loss, and some third-tier cell factories were forced to shut down. On the module side, the price of 182mmTOPCon bifacial double-glass modules dropped to RMB 0.76/W, a decrease of 11.6%. Modules have fallen below cash costs, and the installations in China have gained momentum in the third quarter, driving demand to improve the module market.
This week, the operating rates of the two first-tier enterprises remained at 55% and 95% respectively. The operating rate of integrated enterprises is maintained between 50%-60%, and the operating rate of the remaining enterprises is maintained between 40%-100%. Recently, some polysilicon manufacturers are willing to raise prices, and the upstream and downstream of the current market environment have reached a consensus expectation. In mid-to-late September, the terminal companies will stock up in advance which may drive wafer prices to increase due to demand stimulus. Prior to this, wafer prices fluctuated at the bottom in August, and the supply-demand imbalance of individual sizes may fall slightly.
Source: https://mp.weixin.qq.com/s/n1ckNbq4FCSZHlfbUxGmrw