Module Market Remained Stagnant and Stable, PV Glass Prices Held Steady [SMM Silicon-Based PV Morning Meeting Minutes]

SMM May 18 update:

Silicon Metal

Price

The silicon metal market trended weak last week. SMM east China oxygen-blown #553 silicon was at 9,200-9,300 yuan/mt, and #441 silicon was at 9,400-9,500 yuan/mt. In the futures market, bulls reduced positions and the most-traded contract price pulled back significantly to around 8,500 yuan/mt. Spot transaction prices were weak under pressure.

Production

Supply side, the operating rate of silicon metal declined last week due to temporary shutdowns and furnace preservation at individual northern silicon plants. As production resumes, the operating rate is expected to increase and recover this week. Combined with production increases at some southwestern silicon enterprises in June, the silicon metal operating rate in June is expected to increase compared to May.

Inventory

Social inventory: According to SMM statistics, as of May 14, the total social inventory of silicon metal in major regions was 554,000 mt, up 3,000 mt WoW (excluding Inner Mongolia, Ningxia, Gansu, and other regions).

Polysilicon

Price

Over the weekend, N-type recharging polysilicon was quoted at 34-36 yuan/kg. Weekend market prices were temporarily stable, while market costs remained pending. Leading manufacturers held firm at around 35 yuan/kg. Downstream inventories were sufficient with no apparent purchasing demand for now.

Production

In May, production increases and maintenance at domestic bases occurred simultaneously, with total production edging up by about 3,000 mt from April. Going forward, attention should be paid to production resumptions at leading manufacturers.

Inventory

Inventory edged up slightly. Very few new orders were signed in the market, and last week inventory pressure was mainly digested through shipments of previously signed orders.

Module

Price

Domestic module prices were basically stable last week, but amid the stability there was a tug-of-war between upstream and downstream. Currently, distributed and some centralized procurement plans have increased, but negotiations and pushing for lower prices remain the main approach toward current module prices. However, on the module side, supported by cost-side factors, especially silver prices, and strengthened support from solar cell prices, holding prices firm remained the priority. Currently, distributed Topcon 183, 210R, and 210N high-efficiency modules were quoted at 0.7445 Yuan/W, 0.752 Yuan/W, and 0.755 Yuan/W respectively, while centralized Topcon 182/183 and 210N high-efficiency modules were quoted at 0.7235 Yuan/W and 0.7435 Yuan/W respectively.

Production

Currently, module production operations remained basically stable with no significant adjustments, mainly producing based on demand.

Inventory

Module inventory levels remained relatively high recently, as end-user procurement had not yet fully started.

High-Purity Quartz Sand

Price

Currently, domestic inner-layer sand was priced at 40,000-45,000 yuan/mt, middle-layer sand at 20,000-25,000 yuan/mt, and outer-layer sand at 16,000-18,000 yuan/mt. Imported high-purity quartz sand was priced at 50,000-55,000 yuan/mt. 33-inch quartz crucibles were priced at 6,000-6,200 yuan/piece, and 36-inch quartz crucibles at 6,600-6,900 yuan/piece. The lower end of the price range for large-sized crucibles shifted downward, and the proportions of middle and inner-layer sand were adjusted.

Production

In May, quartz sand enterprises' planned production edged up slightly along with wafer production schedules, but the overall MoM increase was relatively low. Most enterprises currently maintained a sales-based production strategy.

Inventory

In May, imported quartz sand inventory levels continued to increase, but the pace narrowed. Crucible enterprises purchased reasonably based on wafer planned production.

PV Glass

Price

3.2mm single-layer coating: 3.2mm single-layer coating PV glass was quoted at 15.5-16.5 yuan/m², with prices stable.

3.2mm double-layer coating: 3.2mm double-layer coating PV glass was quoted at 16.5-17.5 yuan/m², with prices stable.

2.0mm single-layer coating: 2.0mm single-layer coating PV glass was quoted at 8.8-9.5 yuan/m². Recently, glass enterprises maintained stable quotes. With production cuts on the supply side, sentiment to hold prices firm rose, but enterprises with high inventory still had willingness to sell at lower prices.

2.0mm double-layer coating: 2.0mm double-layer coating PV glass was quoted at 9.8-10.5 yuan/m², with prices stable.

Production

Last week, approximately 2,000 mt/day of furnace capacity in China again saw production cuts or shutdowns, and outdated capacity began to exit the market.

Inventory

PV glass inventory levels stayed high. In May, some module enterprises considered stockpiling at low price points, but prices were still subject to ongoing negotiations.