Upstream Material And Component Price Reductions Have Led To A Decline In Module Prices And A Significant Recovery In Cell Profitability

After the Chinese holidays, solar-related materials continued to decline, with the exception of module prices which remained nearly flat. Prices for other materials such as cells, wafers, and polysilicon all decreased.

Polysilico

Polysilicon prices have continued to decline since the Labor Day holiday, with mono-Si compound feedings and mono-Si dense materials now priced at RMB 158/kg and RMB 155/kg, respectively. Downstream wafer businesses are trying to reduce their polysilicon inventory to avoid further losses from price drops. The increase in polysilicon output is weakening price protection for polysilicon companies, with some dumping their stocks, further accelerating the price drop. The ramp-up phase has resulted in lower quality polysilicon, creating an apparent price difference compared to high-quality polysilicon. The drop in prices is expected to continue.

Wafers

Wafer prices have dropped for nearly two weeks, guided by leading wafer businesses. M10 and G12 now cost a respective mainstream price of RMB 5.4/pc and RMB 7.4/pc. Zhonghuan recently announced a more than 8% reduction in its wafer prices following LONGi’s announcement of an approximate 3% drop in wafer prices. The cautious attitude towards procurement in response to falling prices has led to sluggish market transactions. The cell segment’s reluctance to purchase has led to shipment difficulties and an inventory build-up. Combined with the ongoing decline in polysilicon prices, wafer prices are expected to continue to fall in the short term.

Cells

Cell prices have dropped slightly following the Labor Day holiday, with M10 and G12 cells now priced at RMB 1.04/W and RMB 1.1/W respectively. The reduction in upstream polysilicon and wafer prices, along with price suppression from downstream module makers, contributed to the decrease. However, the balanced supply and demand of cells prevented a significant drop, allowing cell businesses to maintain partial profitability. Further reductions in cell prices may occur due to ongoing cost reductions upstream and price pressure from module makers, but the equilibrium between upstream and downstream sectors could slow the decrease. M10 mono-Si TOPCon cell prices have increased due to a gradual rise in market transactions, now priced at RMB 1.18/W.

Modules

Module prices are holding steady in the short term, with 182 & 210 mono-Si single-sided PERC modules priced at RMB 1.67/W and RMB 1.68/W respectively, and 182 & 210 bifacial double-glass mono-Si PERC modules at RMB 1.69/W and RMB 1.7/W. Upstream price reductions have yet to affect the module segment due to the retention of profitability for the cell segment and the traditional peak season for the PV industry. Despite the price-suppressing approach from the end sector, first-tier module makers are stabilizing their prices, and overseas demand is strong. Overall, module prices are expected to remain sturdy in the short term. (Image credit: EnergyTrend)