L R AS Published on Saturday 25 September 2021 - n° 375 - Categories:the prices
Sector prices on the 22 September market
Industry prices on the market
Price increases continue, while production volumes decrease in the context of energy intensity control
As supply was insufficient, some manufacturers stopped production. The volume available in September is not sufficient and has led to a continuous rise in prices.
There were no new transactions, so prices did not change. However, energy rationing will further affect silicon production in October. Coupled with increased production costs resulting from the shortage of silicon powder, manufacturers are poised to raise prices in October. The extent of the increases will depend on the shortage of silicon and the extent to which end-users will accept the cost increase. They have already suffered from successive increases in panel prices.
After LONGi's significant price increases, Zhonghuan has also raised its prices. The 170 µm G1, M6 and G12 mono-Si wafers are sold at RMB 5.18/piece, RMB 5.18/piece and RMB 5.50/piece, i.e. only slightly less than LONGi's prices. 5.18 RMB/piece and 5.50 RMB/piece, which is only slightly lower than LONGi's prices for G1, M6, M10 at 5.24 RMB/piece, 5.34 RMB/piece, and 6.41 RMB/piece.
Silicon and wafer production capacity are the segments of the industry most affected by energy rationing. The production volume of wafers has been lower than that of cells, resulting in a greater than expected shortage of wafers. Buyers have no choice but to accept the prices of the two major wafer manufacturers
The increase in wafer and BOM (glass) prices has led to an increase in panel production costs, which is beginning to affect end-user demand. As a result, cell manufacturers are finding it difficult to maintain their costs and are expected to reduce production in order to control demand for wafers
Trading has been weak in recent days. Prices for G1 and M6 formats were signed at 1.12 - 1.15 RMB/W and 1.04 - 1.05 RMB/W. On the other hand, the price of M10 and M12 cells jumped to 1.07 - 1.08 RMB/W and 1.02 - 1.04 RMB/W due to the increase in wafer prices.
Integrated companies continued to slow down their cell purchases this week. Medium to small panel manufacturers were the only buyers with a price of RMB 107/W for M6 and RMB 1.09/W for M10. High prices should limit future increases
It is announced that Jiangsu manufacturers, subject to the dual control of energy intensity and consumption, will reduce production in the second half of September
Manufacturers are experiencing a steady decline in profits as a result of the commodity price increases they are experiencing. They are passing these on. They are also suffering from glass price increases and shortages of EVA raw materials. Production capacity utilisation rates will be reduced in late September/early October.
Panel prices seem chaotic at the moment, with delivery prices for previously signed orders of M6 glass sheet panels at 1.78 RMB/W, and glass sheet panels over 500W at 1.8 RMB/W. Under current cost pressure, panel manufacturers have revised spot prices. As a result, new orders have seen huge price differences compared to previously signed orders. This week, surveys revealed that new orders for M6 glass sheet panels and glass sheet panels over 500W were signed at RMB 1.8 - 1.82/W and RMB 1.83 - 1.85/W, respectively.
In overseas markets, large projects experienced marginal price fluctuations. Prices for M6 and M10 panels averaged $0.24-0.242/W and $0.245-0.25/W respectively. Few orders were signed, with negotiations for deferred delivery of several orders reported.
End-buyer prices continued to rise. European M6 panel prices are at 0.2 - 0.215 €/W and may increase by a further 0.05 €/W in October. As costs seem to remain on an upward trend, panel prices for the fourth quarter of this year and the first quarter of next year will rise further. The outcome of the price negotiations remains uncertain for the time being.
PV InfoLink of 22 September 2021
Editor's note: The logic of the price increase for both silicon and wafers is not well understood. The energy restriction is already being put forward and will only start to take effect in the next few weeks. All manufacturers have increased their wafer production capacity...
The China-US dominance war for the control of photovoltaics seems to be the only real explanation for this price tension