Year-End Backsheet Monthly Production Continues to Decline, Annual Market Outlook Not Optimistic [SMM Analysis]

Entering December, with the year-end approaching and module scheduled production weakening, the demand for backsheet also remained weak. Compared to November, its production schedule continued to decline.

Reviewing the backsheet market this year, apart from the continuous reduction in production and the downward in monthly production schedules, market prices were also not optimistic. Currently, the low-end price of CPC conventional backsheets is less than 5 yuan/m². Under the impact of low prices and weak demand from downstream modules, the Q3 financial reports of several leading backsheet companies were not optimistic, with both production and sales declining and some companies suffering significant losses.

Due to losses on backsheet production, some small backsheet manufacturers also successively shut down domestic conventional backsheet production lines during Q3, mainly focusing on clearing inventory or taking orders for customized lightweight module-compatible backsheets. Overall, this year, the backsheet market faced a situation of both price and production declining.

According to SMM data estimates, the total production of the backsheet market this year is expected to be about 500 million m², with the highest production coming from Jolywood, nearly 130 million m², and it is currently estimated to be the only backsheet manufacturer with an annual output exceeding 100 million m². Compared to last year's output, all manufacturers experienced varying degrees of decline, and the overall backsheet market sentiment significantly deteriorated.

With the gradual reduction of single-glass modules, it is expected that next year's backsheet market demand will still run weak, with the main demand for backsheets coming more from overseas and domestic lightweight module application scenarios.