L R AS Published on Monday 17 May 2021 - n° 362 - Categories:the prices
The trend of 12 May: the rise in the price of silicon is spreading throughout the photovoltaic industry
Silicon:
Although the price of silicon at the end of May is already between RMB 150 and 163 per kilogram, the price of major manufacturers after the Labour Day holiday reaches
160 to 170 RMB/kg. Already, orders are being signed with prices between RMB 170 and 180/kg. In overseas markets, prices have risen to close at $21-22/kg. Some non-Chinese silicon orders were traded at $24/kg.
This is despite weak end-user demand. Furnace maintenance is leading to a decrease in supply in May, which is expected to continue in the second and third quarter.
Multicrystalline silicon has not seen any price fluctuations but continues to rise. It has already reached 100 RMB/kg, leading to a rise in the price of multicrystalline wafers.
Wafers:
The shortage of silicon is leading to lower capacity utilisation for wafer production. Wafer manufacturers have had to inform cell producers that they will not be able to meet their long-term orders.
On 10 May, in the context of insufficient supply of mono-Si wafers, Zhonghuan increased its prices again, with G1 and M6 (170 µm) and G12 (175 µm) wafers being sold at RMB 4.26, 4.445 and 7.23/piece, respectively, indicating a price increase of 8% for G1 and M6 format, and 9% for G12 format At the end of April, official prices were RMB 3.93/piece for G1 and M6 wafers (170 µm) and RMB 6.63 for G12 wafers (175 µm).
LONGi is likely to increase its prices as the price of polysilicon increases. The price of polysilicon has increased by RMB 30-40/kg since the beginning of April.
Multicrystalline wafers continue to see price increases in the context of rising polysilicon prices.
Cells:
The major wafer manufacturers increased their official prices twice at the end of April. In the second week of May, cell manufacturers renegotiated orders: cell prices increased by at least 1 RMB/W.
Several medium and small panel manufacturers accepted the increases, feeling that they had more room to manoeuvre. Divergent prices appear in the orders of Tier 1 and Tier 2 producers. M6, M10 and G12 cell prices start to converge
After the two price changes by Zhonghuan, the cell price was increased to between 0.97 and 1 RMB/watt. The prices are getting closer to 0.99 - 1 RMB/W. Orders are placed at this price
Overseas prices are rising in turn
Large cell production is still based on the OEM model. Trade is rather low, with little drawdown of stocks. Major panel manufacturers are still cautious in their purchasing.
Panels:
Glass prices continue to fall due to weak demand from assemblers. It has returned to its low point before the price increases. However, another wave of price increases is brewing: the BOM has brought only limited price reductions and silicon prices are above the 160 RMB/kg threshold.
Component price increases are forcing panel assemblers to pass on cost increases to meet 30 June orders or reduce production capacity. Price negotiations are underway
PV power plants abroad will also have to increase their prices in the short term due to the general increase.
PV InfoLink of 12 May 2021
