Cost reduction pressure from downstream and inventory build-up to weigh down PV glass prices in December

Fangda Special Steel stated on an interactive platform that its cooperation with CATL mainly involves R&D of steel products, and its subsidiary has partnered with CATL on a PV power generation project.

PV film price negotiations for July are about to conclude early next week, with market expectations pointing to further price declines. According to SMM analysis, the weakening of EVA prices this month and the ongoing compression of film processing fees by downstream module producers are the main driving factors, coupled with a pullback in international oil prices recently, which has triggered bearish expectations for upstream raw materials. This has further squeezed the bargaining room for film pricing. However, upstream EVA producers have remained relatively "desensitized" to short-term cost fluctuations, with their pricing strategies focusing more on the supply-demand relationship in the market. Whether EVA prices can stabilize in the future will depend on variables such as the pace of module scheduled production increases and supply-side unit maintenance. The final outcome of this round of price negotiations and the subsequent developments on the EVA side warrant close market attention.

In the news, on June 25, the National Energy Administration released the national power statistics for the period from January to May. As of end-May, China's cumulative installed power generation capacity reached 4.01 billion kW, up 11.0% YoY, ranking first worldwide. Among them, solar power (4.560, 0.10, 2.24%) installed capacity stood at 1.26 billion kW, up 16.3% YoY; wind power installed capacity was 660 million kW, up 17.0% YoY. Relevant analysts pointed out that during the fifteen years from 2010 to 2025, the installed capacity of various power sources in China grew rapidly, with wind and PV installed capacity achieving average annual growth rates of 22.7% and 75.7%, respectively, which were 4.3 times and 14.3 times the average annual growth rate of thermal power installed capacity, and served as the primary driving force behind China's total installed power capacity exceeding 4 billion kW (5.500, -0.08, -1.43%).