SHANGHAI, July 26 (SMM) - According to SMM, in July, the average price of EVA film fell 7.91% from 16.56yuan per square meter at the beginning of the month to the current 15.25 yuan per square meter. The prices of EVA film are expected to continue to decline amid the strict cost control of photovoltaic module manufacturers.
Firstly, as the prices of silicon materials were high, the operating rates of modules were reduced. Therefore, the EVA film prices were forced to decline.
The cost pressure of photovoltaic module manufacturers was huge. As the upstream silicon material prices rose, the operating rates of modules declined. EVA film is an essential material for module packaging, and the demand depends on the output of the modules. The supply of silicon materials will still be insufficient in August, hence the prices may still rise. Therefore, the operating rates of modules may be limited. In this scenario, EVA film prices are forced to decline.
Secondly, due to the low prices of EVA, the production cost of the film companies is expected to decrease.
As the direct raw material of photovoltaic film, EVA accounts for about 90% of the production cost of photovoltaic film. Therefore, the EVA prices have a great impact on the prices of photovoltaic film. In June, the average purchase price of EVA by large-sized manufacturers was about 29,000 yuan/mt, and the average purchase price of EVA by small-sized manufacturers was 30,500-31,000 yuan/mt. According to SMM research, the recent average purchase price of EVA by large and medium-sized manufacturers is at about 27,000 yuan/mt, and the recent average purchase price of EVA by small-sized manufacturers stands at about 28,000 yuan/mt. As the prices of EVA fall, the production cost of film companies has dropped by about 8.3% on average. The inventory turnover days of photovoltaic EVA are about 30 days to 45 days. In this case, the prices of EVA film may further decline in August.
Thirdly, the gram weight of photovoltaic film fell.
The average gram weight of photovoltaic film in 2021 was 500 g/square meter. At present, the mainstream weight is 460-480 g/square meter. According to related companies, in order to achieve further cost reductions, the gram weight may further decline while meeting the functional requirements of the film. The reduction of gram weight will directly lower the prices of photovoltaic film.
To sum up, the photovoltaic industry chain has always been based on cost reduction and efficiency improvement. Although the film only accounts for 4%-5% of the module cost, the purchase cost of film is strictly controlled. Therefore, the prices of photovoltaic film are expected to continue to decline.
