Demand and Cost Support Collapse, Top-Tier Enterprises Lower Crucible Prices [SMM Analysis]

As of December 13, SMM domestic market quotations for 36-inch PV quartz crucibles were 8,500-9,000 yuan/piece, with an average price of 8,750 yuan/piece, down 1,000 yuan/piece compared to early November, marking another price drop. Quotations for 33-inch PV quartz crucibles were 7,000-8,000 yuan/piece, with an average price of 7,500 yuan/piece, down 500 yuan/piece compared to November. The mainstream transaction prices for 36-inch and 33-inch crucibles were 8,800 yuan/piece and 7,500 yuan/piece, respectively.

Recently, crucible prices have started to decline. Domestic leading enterprises have lowered the quotations for 36-inch quartz crucibles to 8,800 yuan/piece, with transaction prices dropping to as low as 8,500 yuan/piece. Following the price cuts by leading enterprises, domestic crucible companies have also started to reduce prices. The mainstream quotations in the market are around 9,000 yuan/piece, while the actual cost center has dropped to 8,600-8,700 yuan/piece. According to SMM, the main reasons for the price decline are as follows: on one hand, the cost of quartz sand for crucibles has started to drop significantly, with the lowest price of imported sand falling to around 90,000 yuan/mt and the lowest price of domestic inner-layer sand dropping to around 60,000 yuan/mt, leading to a significant collapse in cost support. On the other hand, domestic wafer production schedules have weakened again, with November production falling to less than 43 GW, down 8.77% MoM from October, marking the third consecutive month of decline. December wafer production schedules also remain weak. Under these influences, coupled with reduced wafer purchasing willingness, domestic PV quartz crucible prices have started to decline, and a competitive pricing atmosphere has emerged in the market.

SMM believes that quartz crucible prices will continue to decline. However, in the short term, prices are expected to stabilize first, as crucible companies test the acceptance level of wafer manufacturers after this round of price cuts. Short-term prices are likely to fluctuate rangebound, but considering the need to clear inventory, the transaction price center in the crucible market is expected to decline, with subsequent transactions likely to focus on lower prices.