L R AS Published on Saturday 18 April 2020 - n° 318 - Categories:the prices
Prices in the production chain on 15 April
The trend according to EnergyTrend Competition in the sector is intensifying due to the weakness of demand. Production rates have returned to normal, while demand in China has not yet returned to its previous pace. It is estimated that
that you have to wait until May. For foreign countries, until the pandemic has subsided, demand will be low. This will lead to a drop in prices.
The trend according to PV InfoLink : Prices throughout the supply chain continue to fall. To avoid price declines induced by destocking, wafer producers are buying less silicon and are even postponing their purchases until they assess the level of downstream demand.
Silicon :
According to EnergyTrend Prices have started to fall and have reached production costs. If demand continues to be weak, a major reorganisation of the profession could take place. On the domestic market, the price of monosilicon is 65 - 69 RMB / kg and multicrystalline 42 - 45 RMB / kg. On the foreign market, the price is between 7.54 - 8.17 $ / kg
According to PV InfoLink : This week, the number of mono-Si contracts has decreased. Prices have dropped considerably, ranging between 65 and 68 RMB / kg with an average of 66 RMB / kg, down 5 RMB / kg from the previous week. No deals were signed at prices above 70 RMB/kg in the market.
Multi-crystalline silicon prices continued to decline this week due to reduced demand and low utilisation rates. Prices returned to 38-40 RMB/kg with an average of 39 RMB/kg.
Foreign silicon prices fell this week in line with their Chinese counterparts. It returned to $7.70/kg for mono-Si, and $6.30/kg for multi-Si. The price of silicon reached a new low. The low volume of panel sales is being passed on to silicon. Nothing should change in the short term, prices should continue to fall.
Wafers :
According to EnergyTrend : There is fierce competition between M2 (156.75 mm) and G1 (158.75 mm) formats. It is almost as fierce as the competition between multi-Si and mono-Si a few years ago. Oversupply is leading to considerable price reductions. Multi-crystalline wafers are still in low demand and their price is falling: it is $0.163 to $0.170 each. The M2 monocrystalline wafer is unchanged at $0.370 - $0.388 each. The G1 mono wafer is down to $0.378 - $0.390 / piece. Prices for large products are between $0.405 and $0.415 / piece.
According to PV InfoLink : This week, only a few orders for multi-Si wafers have been signed. Their prices for China continue to drop, down to 1.2 - 1.35 RMB / piece with an average of 1.3 RMB / piece. As the price of multi-crystalline wafers continues to fall, manufacturers are reducing or eliminating their production capacity to avoid or reduce losses.
This week's foreign prices for multi-Si wafers have remained unchanged since last week as no agreement has been reached. They stand at $0.19 - $0.195 /piece with an average of $0.192 /piece.
Low cell stocks have prompted manufacturers of mono-Si wafers to inflate theirs. Prices continue to decline. Some producers are reducing their utilization rates to avoid losses.
One major wafer producer lowered its prices one week after its April price was set. The adjustment did not increase its sales!
Prices for boron-doped platelets are falling among level 2 and 3 manufacturers. This price reduction is most visible for M2 plates, which have sold poorly on several occasions. In China and on foreign markets, the prices of G1 mono-Si wafers have resisted this week, while those of other formats have decreased to varying degrees. Chinese prices for mono-Si wafers were 2.6 to 2.68 RMB/piece for M2, and 2.82 to 3.15 RMB/piece for G1; overseas wafer prices were $0.335 - $0.343 / piece for M2 size and $0.359 - $0.399 / piece for G1 size.
The cells :
According to EnergyTrend : The weak demand is leading to a further drop in the price of cells, while the main manufacturers have increased their production capacities. This threatens small and medium-sized manufacturers who may be forced to liquidate their stocks or production. If nothing changes within a month, overproduction will lead to a reorganisation of the profession.
The price of multi-Si cells is currently between $0.070 and $0.085 / piece. The price of mono-Si cells is $0.100 to $0.104 / W. The price revision range for high efficiency mono-Si cells is $0.105 - $0.110 / W. The price revision range for higher efficiency (> 21.7%) mono-Si cells is $0.110 - $0.170 / W.
According to PV InfoLink Prices have continued to fall this week. Last week's price cuts by the manufacturer of Tier 1 mono-Si wafers led to a further drop in the price of PERC mono cells. As M2 size cells were not selling well, their price fell to 0.78 - 0.79 RMB / W. The price of the G1 size PERC mono cell also fell this week to an average of 0.81 - 0.83 RMB / W. Prices of foreign mono PERC cells show no signs of improvement as orders are not picking up due to the pandemic. In addition, as foreign producers are increasingly turning to G1 size mono PERC cells, the volume of M2 size contracts is decreasing. This week, the average price was $0.104 to $0.105 / W for M2 and $0.106 to $0.107 / W for G1.
Very few orders were placed on multicrystalline cells due to India's closure to imports. However, prices increased slightly in foreign markets. With a small number of transactions in Southeast Asia and Europe, prices improved to an average of $0.315 / piece.
With foreign demand still weak, the cell sector could continue to experience difficulties. Prices for single and multi-Si cells will remain low in the short term. The industry is wondering whether the decline in mono-Si cell prices will be reflected in mono-Si wafer prices. The length of time over which multi-Si cell prices will continue to fall depends on how long the Indian market is closed. But even if multi-Si cell prices continue to fall, this will not help to stimulate demand. Thus, producers of multi-Si cells may have to reduce their utilisation rates or provide outsourcing services.
Panels :
According to EnergyTrend Manufacturers are facing very weak Chinese demand and a slowdown in foreign demand. The level of panel manufacturers' stocks is constantly increasing. Judging by the current situation, it is estimated that this series of price reductions will continue for at least 2 to 4 weeks.
The price of the general 60 cell multi-Si (275 W - 280 W) is currently $0.189 to $0.210 / W. The price of 72-cell high efficiency multi-Si (325 W - 330 W) is $0.195 - $0.240 / W. The price of the general mono-Si (305 W - 310 W) is revised downward to $0.206 - $0.365 / W (sic). The price of high efficiency mono-Si (315 W - 320 W) is $0.210 - $0.335 / W (sic). The price of the higher efficiency mono-Si (> 320 W) is $0.217 - $0.385 / W.
According to PV InfoLink: The closure of the Indian market has had a considerable impact on orders from India. Overseas, residential and commercial buildings are the most affected by the pandemic.
Despite low prices, the demand for foreign panels remains stagnant because in the short term more customers are expected to postpone the delivery of their orders. In addition, delivery delays could persist. Even if panel producers were to lower their prices, they would not be able to stimulate demand, which is why only a few transactions have been concluded recently. In this context, panel manufacturers are focusing mainly on the Chinese market, where demand is relatively stable this year. Prices for PERC mono panels, which have been declining, have reached 1.6 - 1.66 RMB / W. Prices will continue to decline in the short term.
EnergyTrend /PV InfoLink of April 16
