Polysilicon Inventory Falls to around 200,000 mt

Polysilicon: Last week, the mainstream transaction prices for P-type dense polysilicon were 34-37 yuan/kg, and for N-type polysilicon, the prices were 38-41 yuan/kg. Polysilicon prices remained generally stable with slight fluctuations Last week. As orders continued to be signed, the prices of some large N-type orders decreased. However, the increase in downstream purchases and widespread maintenance at polysilicon plants significantly improved market sentiment. Polysilicon showed a destocking trend, with inventory falling to just over 200,000 mt. The polysilicon market may improve in the future.

Silicon Wafer: The mainstream transaction prices for domestic monocrystalline silicon wafers (182mm) were 1.1-1.20 yuan/piece, and for N-type 182mm silicon wafers, the prices were 1.05-1.1 yuan/piece. Silicon wafer prices remained stable last week, with an increase in downstream battery purchases. Large orders exceeding 100 million pieces occasionally appeared, and major crystal pulling factories locked in a large number of orders, underpinning the market. Some companies' quotations increased by 0.05 yuan/piece. However, it should be noted that some large orders were only signed and locked in, with products not yet delivered, so there was no significant decrease in silicon wafer inventory.

Solar Cell: Last week, solar cell prices remained stable. Most new cell manufacturers lowered prices to ship products. June order volumes were not boosted by demand, but as upstream costs temporarily stabilized. Battery makers adopted a wait-and-see sentiment, cautiously adjusting operating rates.

PV Module: Last week, the mainstream transaction prices for centralised PERC 182mm modules were 0.73-0.8 yuan/W, for PERC 210mm modules were 0.75-0.82 yuan/W, for N-type 182mm modules were 0.78-0.85 yuan/W, and for N-type 210mm modules were 0.81-0.87 yuan/W. Module prices remained generally stable with slight fluctuations. Recently, the low prices of N-type modules in centralised projects began to fall below 0.8 yuan/W. According to SMM data, module output in May was about 52.8GW. In June, Southeast Asian production bases chose to significantly reduce or halt production, while domestic production bases dynamically adjusted production schedules due to weak demand, increased inventory pressure, and profit. The output in June is expected to decrease by more than 10% MoM.

End-User: From May 27, 2024, to June 2, 2024, SMM data showed that 34 domestic companies won bids for PV module projects, with bid prices ranging from 0.77-0.83 yuan/W. The weighted average price for the week was 0.84 yuan/W, down 0.03 yuan/W from the previous week. The total procurement capacity awarded was 1,917.9MW, an increase of 1,015.37MW from the previous week. Recently, P-type module procurement demand declined rapidly, and N-type module procurement prices also fell quickly. Overall domestic demand remains flat, with centralised projects facing delays or cancellations due to returns and approval issues. Overseas, regions like the Middle East and Pakistan have high enthusiasm for distributed and centralised installations due to falling module prices.

EVA Film: Last week, PV-grade EVA prices continued to fall, and foamed cable EVA also showed a downward trend, with very limited profit margins. Refining companies face the risk of EVA losses. Last week, the negotiated price for EVA film resin fell below 10,000 yuan, but no transactions occurred. EVA film prices have generally decreased. EVA film inventory is decreasing, and resin inventory has also decreased overall. Overall, resin and EVA film may continue to destock for a period of time. Last week, the market remained weak overall.

PV Glass: Last week, PV glass prices fell again. As of now, the price of 2.0mm single-layer coated glass is between 15.5-17.5 yuan/m², and the price of 3.2mm single-layer coated glass is between 24.5-26.5 yuan/m². The main transaction prices are 16.5 yuan/m² and 26.0 yuan/m², respectively. At the beginning of June, due to differences in inventory levels among companies and weakening module demand, some companies chose to lower prices to reduce inventory, with quotations falling sharply by up to 2.0 yuan/m². Companies with relatively good inventory levels slightly lowered quotations by about 0.5 yuan/m².

High-Purity Quartz Sand Market Dynamics: Prices fell last week. Currently, domestic high-purity quartz sand market prices are as follows: inner layer sand is priced at 100,000-140,000 yuan/mt, middle layer sand at 60,000-90,000 yuan/mt, and outer layer sand at 24,000-50,000 yuan/mt. Recently, domestic high-purity quartz sand market transactions have fallen sharply. This is mainly due to reduced crucible demand and falling prices, which have met resistance in the market. Recently, silicon wafer production operating rates have continued to decline, weakening demand has led to falling crucible prices, and some companies have touched the cost line, reducing their demand for raw material quartz sand. Additionally, the price of imported middle layer sand from India has been further reduced, offering a significant price advantage over domestic sand. This competitive pressure has also led to further declines in domestic quartz sand prices.

Solar Inverter: Last week, inverter prices ranged from 0.12-0.18 yuan/W for 20kw, 0.12-0.17 yuan/W for 50kw, and 0.11-0.16 yuan/W for 110kw. Inverter prices remained generally stable. Overall, domestic and overseas downstream procurement demand remained stable. Domestic centralised procurement demand supported orders for super power models, and companies maintained production schedules. In Europe, the Middle East, and Africa, the motivation to ship was strong, and companies' shipments were smooth.