Some Module Producers Sought to Hold Prices Firm, Silicon Metal in the Doldrums [SMM Silicon-Based PV Morning Meeting Minutes]

SMM April 13 update:

Silicon Metal

Price

Last week, spot silicon metal prices were stagnant and slightly weak. SMM east China oxygen-blown #553 silicon was at 8,900-9,100 yuan/mt, and #441 silicon was at 9,200-9,300 yuan/mt. Last Friday, the most-traded contract closed at 8,250 yuan/mt. As prices continued to weaken, cost support below strengthened, and silicon metal prices consolidated at lows.

Production

In early April, a few silicon enterprises in northern China had small amounts of capacity temporarily halted or under maintenance, which had some impact on total silicon metal production, though the production reduction was relatively limited.

Inventory

Social inventory: According to SMM statistics, as of April 9, social inventory of silicon metal in major regions totaled 564,000 mt, up 4,000 mt WoW (excluding Inner Mongolia, Ningxia, Gansu, and other regions).

Polysilicon

Price

Over the weekend, N-type recharging polysilicon was quoted at 34-36.5 yuan/kg. Weekend market prices were temporarily stable. The market is currently approaching lows, providing some price support, but the market surplus is evident, and downstream buyers still have a mentality to push for lower prices.

Production

In April, some polysilicon production resumptions in China were delayed or additional maintenance was added. Production may fall short of earlier expectations, with China's market production in April estimated at less than 90,000 mt.

Inventory

Order signing increased somewhat in the earlier period, but market supply maintained a certain base level. Compared with supply, polysilicon still faces inventory buildup pressure.

Module

Price

Last week, module prices in China edged down. Recently, some module enterprises in China plan to appropriately hold prices firm and stop falling. However, as some orders in China show signs of release, coupled with the still slightly surplus supply in China, module price competition is expected to persist. Expectations of competing for orders with price concessions remain, and enterprises are also expected to appropriately adopt a strategy of taking orders with price concessions, keeping prices on the weak side. Currently, distributed Topcon 183, 210R, and 210N high-efficiency modules are quoted at 0.751 Yuan/W, 0.76 Yuan/W, and 0.763 Yuan/W respectively, while centralized Topcon 182/183 and 210N high-efficiency modules are quoted at 0.725 Yuan/W and 0.745 Yuan/W respectively.

Production

In April, module production in China has started to decline, with some top-tier enterprises further reducing production schedules from their early-month plans.

Inventory

Last week, some earlier projects in China began deliveries. Combined with production cuts by module enterprises, inventory increases were limited.

High-Purity Quartz Sand

Price

Currently, inner-layer sand in China is priced at 50,000-53,000 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 is priced at 65,000-68,000 yuan/mt. 33-inch quartz crucibles are priced at 6,000-6,300 yuan/piece, and 36-inch quartz crucibles at 7,000-7,300 yuan/piece. Spot order prices for imported sand have declined.

Production

In April, quartz sand enterprises slightly reduced production schedules. High-purity quartz sand enterprises in China formulated production plans in line with wafer demand.

Inventory

In April, imported quartz sand inventory levels continued to increase. Crucible enterprises made reasonable purchases based on wafer planned production.

PV Glass

Price

3.2mm single-layer coating: 3.2mm single-layer coating PV glass was quoted at 16-17 yuan/m², with prices falling.

3.2mm double-layer coating: 3.2mm double-layer coating PV glass was quoted at 17-18 yuan/m², with prices falling.

2mm single-layer coating: 2mm single-layer coating PV glass was quoted at 9.3-10.3 yuan/m². In April, glass prices fell again. Some second-tier producers began lowering prices to compete for orders, with some large orders including discounted prices reaching around 9 yuan/m². Given that no significant production cuts have yet occurred in China, prices are expected to be under considerable pressure in April.

2mm double-layer coating: 2mm double-layer coating PV glass was quoted at 10.3-11.3 yuan/m², with prices falling.

Production

Last week, there were no new furnace additions or cold repairs in China. Some small furnaces increased port blockages, but previously commissioned furnaces gradually ramped up, keeping supply relatively high.

Inventory

PV glass inventory stayed high. Some glass enterprises had days of inventories approaching around 45 days, with the industry facing enormous inventory pressure.