L R AS Published on Monday 16 May 2022 - n° 404 - Categories:the prices
Prices are rising again: due to strong demand? manipulation?
Prices are still rising: is this due to strong demand? Or to a concerted effort to make the most of the products manufactured?
silicon :
In May, silicon production by some major manufacturers fell, due to partial inspections of furnace lines.
Nevertheless, this month's monthly production volume is expected to be between 65,000 and 66,000 tonnes, an increase of 4-6% on April's level, thanks to new capacity commissioned at the start of the year.
The market notes that upstream shortages show no sign of abating. Silicon supply remains limited. Monograde silicon prices continue to rise, settling at RMB 252-257/kg, while the price of recycled silicon scrap is slightly higher. Overall, prices in the silicon sector are above RMB 250/kg.
In April, production volume increased by 16% compared with January. Nevertheless, prices are rising due to stronger demand from end-users and a disproportionate relationship between supply and demand caused by a rapid expansion in ingot plant capacity.
Wafers :
Prices for Tier 2 wafer manufacturers remained unchanged, despite price increases from the two major producers. Faced with persistently high silicon prices, mono-Si wafer manufacturers are accelerating the development of thinner 155-160 µm wafers. Some manufacturers have completed the transition to 155μm, but 166 mm and 182 mm wafers will be priced at 160 µm thickness.
The RMB/$ exchange rate has changed significantly, but this has not yet had an impact on prices.
Cells :
The pandemic continues in China. However, logistical bottlenecks in the various sectors are beginning to ease. This month, production lines for the main formats are running at full capacity. Given the high utilisation rates, cell manufacturers are continuing to challenge the downstream market by offering higher prices, which stand at 1.19 RMB/W for standard formats.
On overseas markets, prices are fluctuating as the dollar rises.
This week, M6, M10 and G12 cells are trading at 1.1-1.14 RMB /W, 1.75-1.19 RMB /W and 1.15-1.17 RMB /W.
When cell prices rise, Tier 1 panel manufacturers suspend their purchases. The recent rise should encourage panel assemblers to suspend their purchases in June.
Overseas markets are seeing a slightly higher volume of orders, as they have greater bargaining power thanks to higher prices in China and the advantage of exchange rates.
Panels :
Prices continue to rise, driven by supply chain costs, glass and EVA. So far, Tier 1 manufacturers' quotes for glass-foil panels over 500W have risen by 0.05-0.1 RMB/W. Some end users are beginning to accept prices of 1.9 RMB/W. Given the relentless rises in raw material prices, panel manufacturers are continuing to revise their prices upwards, to 1.92-1.96 RMB/W or even 2 RMB/W.
Orders for May should be delivered at a price of 1.88-1.95 RMB/W for large projects, and 1.92-1.94 RMB/W for decentralised projects, with a difference of 0.02-0.04 RMB/W between glass panels with a wattage of more than 500 W and their glass counterparts with a lower wattage. Overall, prices average around 1.9-1.92 RMB/W.
On foreign markets, prices are stabilising, with slight fluctuations depending on the dollar.
In Europe, delivered prices are peaking. End-user stocks are falling as high prices dampen demand. At the moment, prices for glass-foil panels over 500 W are between $0.27 and $0.275/W, reaching over $0.28 to $0.30/W on the spot market. For residential projects, prices stand at $0.285-0.30/W. Prices for panels with a black back sheet are $0.295-0.35/W.
N-type cells and panels
There are still few transactions on N-type products. Prices for M6 HJT cells are around RMB 1.28-1.35/W.
TOPCon M10 and G12 cells have not yet seen much trading. Prices are currently at 1.2-1.25 RMB/W.
Prices for TOPCon M10 and G12 panels remain at the same level as last week, at 1.95-2.05 RMB/W, and 0.28-0.3 $/W on overseas markets.
https://www.infolink-group.com/en/solar/spot-price/2022-0511-PV-spot-price
PV InfoLink of 11 May 2022
Editor's note There is no doubt that the whole world is focusing on the installation of PV panels. This dynamic demand is perhaps at the root of the shortage, unless the Chinese, who have a virtual monopoly on production, are using this demand as an excuse to charge their customers. After all, it's not yet the peak season for photovoltaic installations. Yet silicon production rose by 16% in the first four months of the year!
