[SMM analysis] Glass prices to increase further in April

Last week was the traditional price negotiation period for new orders. The price of photovoltaic glass stabilized. The price of 2.0mm single-layer coated glass is 15.8-16.5 yuan/square meter, and the price of 3.2mm single-layer coated glass is 25.5-26.0 yuan/square meter. The mainstream transaction prices are 16.0 and 25.5 yuan/square meter respectively. There were no transactions in the market last week. Most companies have negotiated the price and volume of April orders. The demand remains at a relatively high level and glass transactions remain promising.

The demand for photovoltaic glass downstream modules has continued to rise recently, and terminal installed capacity has also increased slightly. The overall demand has recovered. The recent production of modules has also increased compared with the previous period. Monthly production scheduling data continues to rise. SMM statistics predict that domestic photovoltaic module production schedule will also reach more than 55GW in April, and glass demand will continue to remain high. On the domestic glass supply side, although there were 3,200 tons/day of new kilns commenced in China in March, calculated based on monthly output, the supply barely meets demand. Module companies have begun to stock up on glass. According to incomplete statistics from SMM, domestic glass stocking volume reached about 10GW in March. Based on the current production schedule, glass supply will fall short of demand in two months and prices are expected to rise.

SMM believes that glass prices will rise in April, with an increase of approximately 1-1.5 yuan/square meter, which is a relatively large increase. The main reason is that the current demand for modules is good, and the stockpiling has increased. The transaction volume has increased rapidly. It is expected that glass prices will rise in April and May.