L R AS Published on Monday 24 October 2022 - n° 421 - Categories:the prices
The industry: rising cell prices increase the cost of panels
The industry according to PV InfoLink: relentless rises in cell prices are increasing the cost of panel production
Silicon :
Silicon production capacity is now increasing.
It will increase by 25% in the fourth quarter. Production will increase gradually.
The price of monograde silicon has stabilised at between RMB 301 and RMB 306/kg. There has been little change in prices, despite expectations that they will fall.
The recurring pandemic strikes north-west China. Traffic restrictions, coupled with an unusually early drop in temperature, rain and snow in northern China, are disrupting the logistics of upstream sectors to varying degrees.
Wafers :
Prices are holding firm. Inventory drawdowns are resuming after a slowdown before the bank holidays. The supply of mono-Si wafers is insufficient, as the pandemic in north-west China is weighing on the production of the main manufacturers. The market is still expecting prices to fall. Some tier 2 and 3 manufacturers are lowering their prices slightly.
The sudden resurgence of Covid will affect the relationship between supply and demand from mid-October onwards. Nevertheless, current supply and increases in production capacity in the upstream sectors will prevent price rises at the end of the month or early next month.
Cells :
Cell supply remains low. The price of M10 cells has reached 1.34-1.35 RMB/W. As panel manufacturers maintain high utilisation rates, some manufacturers are reportedly offering prices of 1.35-1.36 RMB/W for rush orders.
This week, M6, M10 and G12 cells are trading at 1.31 RMB/W, 1.33-1.34 RMB/W and 1.33-1.34 RMB/W, respectively.
The shortage of cells is keeping prices down. This depends on the acceptability of price trends to panel manufacturers.
Panels :
Glass-glass panels over 500W are delivered at 1.95-2.05 RMB/W, with a price difference of 0.01-0.03 RMB/W compared to panels with backsheet.
Stable demand is supporting prices in China, thanks to the launch of ground-mounted projects. However, more expensive cells and the imminent rise in the price of inverters are increasing panel production costs. Small and medium-sized panel manufacturers could reduce their utilisation rates. It is not clear when prices will fall in the fourth quarter. Overall, price trends in the fourth quarter are inconsistent.
In foreign markets, demand is slowing as some fourth-quarter projects are shifted to next year. Average prices are stabilising at $0.25-0.26/W, with the low end of the price range at $0.245/W. This week, panel prices (FOB) stand at $0.245-0.28/W in Europe.
PV InfoLink, 19 October 2022
Editor's note: Covid 19 is still raging in north-west China.
