Will PV Glass Reduce Production? Latest Industry Operating Statistics [SMM Analysis]

Published: Sep 3, 2024 16:50
Source: SMM
As September arrives, domestic PV glass prices have fallen again.

As September arrives, domestic PV glass prices have fallen again. Against the backdrop of declining industry profits and weakening demand, the PV glass industry has entered a period of overall losses. Following the losses and a decrease in order volumes, some domestic glass companies have recently accelerated their entry into the cold repair period, and the reduction in kiln production has become more severe since August.

In September, domestic PV glass prices fell again. The price of 2.0mm single-layer coated glass has dropped to 12.5 yuan/square meter. Under the pressure of high inventory, it is expected that companies' willingness to offer discounts will only increase, and transaction prices are likely to decrease slightly. According to SMM cost calculations, the current glass industry has reached the stage of full industry loss in terms of total cost and is approaching the cash cost line of full industry loss. With the increasing scope of losses and no improvement in demand, the willingness to operate has begun to decline.

In August, two more kilns in China entered cold repair, with a combined capacity of 750 mt/day. Besides cold repairs, many companies started reducing kiln production in August.

In August, a total of 12 kilns in China began reducing production, with a total kiln capacity of 10,110 mt/day, accounting for about 9.59% of the total operating capacity. This resulted in a capacity reduction of 2,909 mt/day, and the expected supply reduction has increased.

Recently, there have been rumors in the glass market that glass companies will collectively enter a phase of cold repair and production reduction, leading to a 30% decrease in production. SMM has learned that there is no collective effect; most of the kilns reducing production belong to companies with relatively smaller total capacities. Major companies have fewer production reduction operations, and some of the major companies' cold repair capacities are planned for kilns reaching their normal cold repair stage. Additionally, the subsequent cold repair and production reduction kilns are limited. The supply in China in September is still slightly surplus, with limited impact. However, it is expected that with some companies' maintenance and production reductions, the domestic supply side will enter a recovery phase. During this phase, glass demand will also slightly increase due to year-end installations, and glass inventory will begin to decrease slightly.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
[SMM PV] Four Major PV Module Leaders Completed Disposal of US Capacity Assets
1 hour ago
[SMM PV] Four Major PV Module Leaders Completed Disposal of US Capacity Assets
Read More
[SMM PV] Four Major PV Module Leaders Completed Disposal of US Capacity Assets
[SMM PV] Four Major PV Module Leaders Completed Disposal of US Capacity Assets
On May 12, all four major PV module leaders had sold majority or full equity stakes in their US factories. Jinko Solar announced the sale of 75.1% equity in its US 2GW module factory for $191.5 million. At this point, the US capacity assets of all four major PV module leaders—Jinko, TrinaSolar, JA Solar Technology, and LONGi—had been fully disposed of, primarily in response to the provision in the US One Big Beautiful Bill Act (OBBBA) that foreign ownership must not exceed 25% to qualify for IRA tax credits.
1 hour ago
[SMM PV] Guizhou 18MW PV Project Installation Engineering Bid Opening
1 hour ago
[SMM PV] Guizhou 18MW PV Project Installation Engineering Bid Opening
Read More
[SMM PV] Guizhou 18MW PV Project Installation Engineering Bid Opening
[SMM PV] Guizhou 18MW PV Project Installation Engineering Bid Opening
On May 13, the installation project of the 180MW PV project in Wangmo County, Guizhou opened bids today. The labor subcontracting for the installation project of Gezhouba Mechanical and Electrical Company's Wangmo County Zhexiang PV power station project in Guizhou opened bids at 10:00 today. The project has a planned capacity of 150MW and an installation capacity of 180.18MWp, using 715Wp monocrystalline silicon bifacial double-glass modules throughout.
1 hour ago
Silicon Metal Futures Prices Weakened, Heavy Wait-and-See Sentiment in Polysilicon Market [SMM Silicon-Based PV Morning Meeting Minutes]
2 hours ago
Silicon Metal Futures Prices Weakened, Heavy Wait-and-See Sentiment in Polysilicon Market [SMM Silicon-Based PV Morning Meeting Minutes]
Read More
Silicon Metal Futures Prices Weakened, Heavy Wait-and-See Sentiment in Polysilicon Market [SMM Silicon-Based PV Morning Meeting Minutes]
Silicon Metal Futures Prices Weakened, Heavy Wait-and-See Sentiment in Polysilicon Market [SMM Silicon-Based PV Morning Meeting Minutes]
[SMM Silicon-Based PV Morning Meeting Summary] Polysilicon: N-type recharging polysilicon was quoted at 34-36.1 yuan/kg. Polysilicon prices were relatively stable overall, with extremely limited order signing in the market. Some crystal pulling plants showed low-price purchase willingness, but top-tier manufacturers still held the floor above 35 yuan. With cost setting imminent, manufacturers had a strong wait-and-see sentiment. Wafer: Market 18X wafer prices were 0.9-0.93 yuan/piece, 210RN wafer prices were 1.00-1.03 yuan/piece, and 210N wafer prices were 1.2-1.23 yuan/piece. Recently, a top-tier enterprise completed bulk transactions of 210R wafers at 1.02 yuan/piece. Currently, except for 210N, the other two sizes had already accepted the previous round of price increases, and subsequent trends would depend on downstream cell price movements.
2 hours ago
Will PV Glass Reduce Production? Latest Industry Operating Statistics [SMM Analysis] - Shanghai Metals Market (SMM)