L R AS Published on Saturday 31 August 2019 - n° 287 - Categories:the prices
Demand tends to homogenise prices in PV
Photovoltaic products are tending towards diversification in 2019. Market demand tends to homogenise prices
This differentiation propagates in the direction of the supply chain (platelets and cells).
The two-sided panels :
their demand is steadily increasing, which is reflected in the bifacial cells. Hence the change in the price of standard cells and that of high efficiency bifacial cells (> 21.5%) in the first half of 2019 for overseas (left) and for the Chinese market (right).
Graph 1: Price Trends of Superior High Efficiency (>21.5%) Standard and Bifacial Cells Worldwide for 1H19. (Left: Overseas (non-China), USD/W; Right: China, RMB/W)
Chinese manufacturers produce 98% of all bifacial cells. Chinese domestic demand is sourced locally, unlike foreign markets; prices for bifacial cells are higher because they are more efficient. They are better able to withstand downward pressure in China than in foreign markets. The price of high-efficiency bifacial cells in the first half of 2019 is stable on the Chinese market (from 1.31 RMB / W to 1.31 RMB / W, and down 4.4% for other foreign markets (from 0.183 USD / W to 0.175 USD / W).
The price differential between standard high efficiency cells and bifacial cells will evolve according to the balance between supply and demand. Demand is strong and concentrated in the Chinese markets, which leads to fairly frequent price fluctuations. However, other overseas markets do not demand as much bifacial products as China at the moment, so prices are rather stable.
Platelet size The format of the plates was, twenty years ago, 4 inches. In 2013, the 5-inch format (156.75 mm x 156.75 mm) became the norm. For manufacturers, larger formats allowed (and still allow) to reduce costs and increase efficiency.
In theory, different sizes of inserts should have different prices. However, when comparing prices in China in thefirst half of the year, the price difference decreases when demand shrinks.
Graph 2: Price Trends of Mono/Multi Wafers Worldwide for 1H19 (Left: Overseas (non-China), USD/Pc; Right: China, RMB/Pc)
When products have become more diverse, buyers have more choice. Prices vary according to demand and market acceptance rather than actual market value.
https://www.energytrend.com/research/20190827-15080.html
EnergyTrend of 26 August
Editor's note The article sheds new light. According to him, the price depends mainly on demand and not on production costs.
