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In a new weekly update for pv magazine , OPIS, a Dow Jones company, offers a small analysis of solar PV module supply and price trends.
China FOB prices for mono PERC and n-type M10 wafers have temporarily stabilized after five consecutive weeks of declines, assessed at $0.203/pc (pc) and $0.197/pc, respectively.
Meanwhile, prices for mono PERC and n-type G12 wafers experienced further declines, dropping 1.49% and 4.68% respectively week-on-week, now standing at $0.264/pc and $0.285/pc .
According to a market source, the continued decline in the price of G12 wafers can be attributed to reports that a major G12 wafer manufacturer has the largest inventory among producers in the sector.
According to OPIS market research, the average transaction prices of PERC M10 mono and n-type M10 wafers in the Chinese domestic market remain around 1.625 yuan (US$0.22)/W and 1.583 yuan/W, respectively. Although wafer companies have been facing financial losses for about three months, recent significant drops in polysilicon prices have helped alleviate their losses, an industry source said.
Wafer companies are currently suffering losses of between 0.1 yuan/pc and 0.15 yuan/pc on average, based on current polysilicon and wafer prices, the source added.
Efforts to reduce production and liquidate wafer inventory are progressing slowly, according to one market observer. The current inventory of wafers continues to fluctuate between 3 billion and 4 billion units, which is approximately equivalent to about 28 GW. This is equivalent to almost two weeks of production, as the Silicon Industry of China Non-Ferrous Metals Industry Association forecasts wafer production of 63 GW in April.
According to a market participant, it is possible that the current recession will only be broken when some companies leave the market due to their inability to sustain the current loss situation with their cash flow.
A downstream market source has shown interest in several wafer companies first-quarter financial reports, which are expected to be released shortly. Reports are circulating that a state-owned wafer producer incurred losses of 3 billion yuan in the first quarter, the source said, although this has not yet been confirmed. However, this matter is expected to be clarified once the financial reports are made public.
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 . |
