Photovoltaic glass supply tightens amid growing demand, buoying up its prices

SHANGHAI, Aug 21 (SMM) – As of mid-August, photovoltaic (PV）glass prices have seen frequent changes this month. Currently, the prices for 3.2mm and 2.0mm photovoltaic glass are 25.0-26.0 yuan/square meter and 17.0-18.0 yuan/square meter respectively, marking increases of 0.35 yuan/square meter and 0.50 yuan/square meter from July.

This month, photovoltaic glass prices have seen frequent adjustments. At the start of the month, prices for 2.0mm and 3.2mm types rose significantly from July, up by about 0.6-1.0 yuan/square meter, with second and third-tier companies seeing larger increases. The main driver of the price increase has been the surge in PV module production plans in August, boosting demand for photovoltaic glass. Also, glass companies maintained good control of production in July, sufficiently backing the price rise. However, after the first week of August, some second and third-tier firms, with prices higher than top-tier companies, faced poor order volumes. As a result, they adjusted their quotes downward, with the 3.2mm glass dropping from 26.5 to 26.0 yuan/square meter, aligning with top-tier quotes, and a minor reduction was made for 2.0mm glass as well. After market prices stabilized, some glass companies saw an uptick in sales. High demand from second-tier and third-tier PV module companies strained delivery capacities of secondary glass suppliers. Unable to meet recent PV module procurement needs, supply became tight in some areas. Consequently, some glass companies planned to raise their prices moderately in late August.

Since 2023, China's photovoltaic glass production capacity growth has significantly slowed, even showing negative growth as of August. Interest from domestic glass companies in increasing production is waning, with some even halting or cancelling planned expansions. Overall, this year has seen a steady supply and slowed growth of photovoltaic glass production. Meanwhile, overseas demand and monthly exports have improved. Domestic photovoltaic module production is also rising, reaching a yearly high of over 50GW in August. The rising demand and slowing supply growth have indeed mitigated the surplus in the glass market. It's logical to see some areas experiencing supply constraints.

SMM forecasts a minor rise in glass prices by late August. Activity from smaller businesses and a decrease in overall glass prices lend support to this anticipated price increase. SMM foresees a clearer upward trend in glass prices in September. With soda ash prices continuously rising to around 2400 yuan/mt, an increase of nearly 500 yuan/mt from July, the dual push from costs and demand is expected to slightly drive up glass prices in September.