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In a new weekly update for pv magazine , OPIS, a Dow Jones company, offers a quick look at the main price trends in the global PV industry.
Solar wafer prices plummeted to their lowest values ??in history when trading resumed after Chinas Golden Week, according to OPIS data. Extending their downward trend since before the holidays, Mono M10 wafers plummeted a hefty 10.29% to $0.34/unit and Mono G12 wafers fell a similar 7.33% to $0.468/unit.
Numerous sources agree that the main factors explaining the reduction in wafer prices are the decrease in demand and the accumulation of inventories due to the high production rate of manufacturers.
Based on wafer manufacturers production schedules, one market observer estimates Chinas wafer production would be around 65 GW in October. This would indicate an increase of around 8% compared to the 60-61 GW of wafers produced in September, according to data from the China Non-Ferrous Metals Industry Association Silicon Industry.
In the wafer market there are currently about 2.4 billion units in stock, that is, about 20 GW, according to a source at a major vertically integrated company. This figure is likely to continue rising soon due to the high pace of operation of wafer fabs, the source added.
Based on current polysilicon prices, the cash cost of producing Mono M10 wafers at Tier 1 facilities is about 2.5 yuan ($0.34)/unit, which means there is still some There is room for Mono M10 wafer prices - currently the average market price is approximately 2.78 yuan/unit - to continue falling, according to a source in the polysilicon segment.
Wafer sales have also been hampered by reduced production and the wait-and-see attitude of manufacturers, OPIS has learned in its weekly market study. This week has also seen the lowest price in the history of solar cells: Mono M10 and G12 cells have dropped by 8.35% and 2.39%, respectively, to $0.0746 and $0.0816 per square meter.
According to another market observer, cell manufacturers currently have no incentive to maintain high exploitation rates given their low profit margins, which translates into declining demand for wafers. This source therefore anticipates that wafer producers could be forced to reduce their prices on a weekly basis due to the constant decline in demand.
“Wafer producers cut production when wafer prices fall to the point where there is no room to reduce prices,” said a developer source.
OPIS, a Dow Jones company, provides energy prices, news, data and analysis on gasoline, diesel, jet fuel, LPG/LNG, coal, metals and chemicals, as well as renewable fuels and environmental commodities. In 2022 it acquired the pricing data assets of the Singapore Solar Exchange and now publishes the OPIS APAC Solar Weekly Report . |
