The weakening demand led to limited actual procurement volume, and the transaction center of PV glass shifted downward. [SMM Analysis]

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SMM April 18 News:

Current glass prices in April are as follows: 2.0mm single-layer coating (13.5-14.5 yuan/m²); 2.0mm double-layer coating (14.5-15.5 yuan/m²); 3.2mm single-layer coating (22-23.5 yuan/m²); 3.2mm double-layer coating (23-24.5 yuan/m²); 2.0mm back glass (12.5-13.5 yuan/m²). In mid-April, the price center of domestic glass companies slightly decreased. According to SMM, the main reason for the price drop is the recent decline in module demand and the continuous weekly decrease in module prices, leading to a decline in the purchase willingness of module companies. The recent trading volume of glass has shifted downward, resulting in a price drop.

Figure: PV Glass Trend

Data Source: SMM

Specifically, regarding the reasons for this round of price adjustments, the trading center of glass has shifted downward. SMM analyzed that, first, from the supply and demand perspective, domestic glass supply increased slightly in April, with a small portion of production from previously started kilns being released. Additionally, with the recovery of blocked kilns, market supply steadily increased, and the supply in April is expected to reach 50GW. On the demand side, with the decline in end-use demand and the impact of trade war tariffs, module production schedules have started to decline compared to expectations. Meanwhile, the continuous weekly decrease in module prices has led to a decline in the overall purchase mentality of module companies. The trading volume in the glass market has significantly declined in the past week, and the weekly inventory of glass increased by about 1 day MoM. Under the influence of rising inventory, glass companies slightly lowered their quotes this week.

For the subsequent price forecast of new orders in April, SMM believes that the overall market transaction prices will remain stable. Some module companies plan to enter the market for procurement next week, and the trading volume is expected to slightly recover. Considering new orders for May, glass companies have a slightly lower willingness to offer further discounts, and the actual market supply-demand balance still shows a slight supply tightness. Therefore, prices will remain stable, and the focus will be on taking orders.