Backsheet Market Operating at Low Levels as Domestic and International Demand Further Declines [SMM Analysis]

SMM, Nov 26: As December approaches and year-end nears, the production schedule for modules is expected to decline, and as a result, the demand for backsheets, an auxiliary material for modules, may weaken further in December. Reviewing the monthly production trends of backsheets, we can observe that domestic monthly production has been fluctuating downward continuously. In November, domestic monthly production even fell below 20 million m², with the industry's average operating rate dropping below 20%, maintaining an extremely low operating rate. Currently, most domestic modules are double-glass modules, resulting in muted demand for backsheets. The production capacity for single-glass modules is mainly concentrated overseas. At present, domestic backsheet manufacturers primarily rely on overseas demand for orders. However, since November, some domestic module manufacturers have also shifted their overseas single-glass production capacity to double-glass, leading to a certain reduction in overseas demand for backsheets. This further weakening of domestic and international demand has caused the monthly production schedule of domestic backsheet manufacturers to fall below 20 million m² in November.

Apart from relying mainly on overseas orders, a small number of domestic backsheet manufacturers have completely shut down conventional backsheet production lines and shifted to customized products for lightweight module orders. However, the current demand for lightweight modules is relatively small, with orders being mostly small and scattered. Small backsheet manufacturers can moderately sustain themselves with lightweight module orders, but large top-tier enterprises find it slightly insufficient to rely solely on lightweight modules. As overseas module production capacity gradually shifts to double-glass, the demand for conventional backsheets is expected to continue weakening. The number of conventional backsheet production line shutdowns may continue to grow next year, with the backsheet market's supply and demand both fluctuating downward.