Glass Prices Fully Increased, Single Rise Reaches 2 Yuan/m²! [SMM Analysis]

SMM February 25 News: Current glass new order quotes for February are as follows: 2.0mm single-layer coating (13-14 yuan/m²); 2.0mm double-layer coating (14-15 yuan/m²); 3.2mm single-layer coating (21-23 yuan/m²); 3.2mm double-layer coating (22-24 yuan/m²); 2.0mm back glass (11-12 yuan/m²). At the end of February, domestic glass companies have recently started quoting new order prices for March. Taking 2.0mm coated glass as an example, the current quote center has increased by 2 yuan/m² WoW, with the increase comparable to the same period last year. No transactions have been signed by module companies yet, and under cost pressure, back-and-forth negotiations are expected to dominate this week. Graph: PV Glass Price Trends Data Source: SMM Specifically, regarding the reasons for this round of price adjustments, SMM analyzed that the glass price increase is primarily driven by the following factors: First, from the supply and demand perspective, although domestic glass supply in February exceeded expectations, overall production is still expected to remain around 40GW. Module production in February is estimated to stay at approximately 35GW. However, due to the impact of stockpiling in February, glass destocking has already begun. Looking ahead to March, with the anticipated increase in module production schedules, a short-term supply-demand mismatch for glass has become inevitable, providing fundamental support for price increases. Second, on the sentiment side, due to the pressure of prolonged losses faced by glass companies and the severe quality issues in the earlier period, companies have strengthened their sentiment to stand firm on quotes to ensure their reputation and product quality. The cut-throat competition among leading domestic glass companies has eased, and they have jointly raised quotes. These two factors are the main reasons for the current price increase. However, the current increase is only in quotes, with no actual transactions yet. Module companies are still facing significant cost pressure due to their own pricing issues, and the cost increase caused by the glass price hike has heightened their resistance. It is expected that most upstream and downstream companies will engage in negotiations this week. Under this backdrop, actual transaction prices have not yet been fully settled. Additionally, with the market continuing to trend positively, new order signing models have emerged in the glass market, and subsequent transaction prices are likely to become somewhat chaotic. In summary, regarding the price forecast for March new orders, SMM believes that price increases in quotes are already a certainty. Actual transaction prices will depend on the outcome of this week's negotiations between upstream and downstream players. However, given the strong sentiment among glass companies to stand firm on quotes and the positive market trend, the willingness to offer discounts remains relatively small.