Hong Kong stock photovoltaic sector strengthens silicon prices may continue to rise in the short term

The Hong Kong photovoltaic sector continued to rise on Tuesday, hitting an intraday gain of 4 per cent, and was still up about 2 per cent as of press time. China Nonferrous Metals Industry Association Silicon Industry Branch earlier predicted that short-term silicon prices will continue to maintain a steady upward trend.

Among them, Xiexin New Energy (00451.HK) and New Special Energy (00451.HK) led the gains, rising 11.05 per cent and 7.75 per cent respectively.

Recently, silicon enterprises in the upstream of photovoltaic have won big orders one after another. The Silicon Branch of the China Nonferrous Metals Industry Association said that at the end of February this year, long orders for silicon in March were signed one after another, and its price depends on factors such as supply and demand in the silicon market in March, inventory capacity in various links, and so on. According to the analysis of the silicon market in March, the increment of supply is less than expected and less than the increment of demand, and the price of silicon will continue to rise slightly in the short term.

Meanwhile, Germany's climate ministry on Monday introduced new draft legislation that would advance the target of 100 per cent renewable energy generation to 2035, 15 years ahead of the previous target. In order to achieve this goal, the department also proposed a plan for the installation of renewable energy by 2035, which will be voted on by all ministries. Among them, the new installed capacity of photovoltaic gradually increased from 7GW in 2022 to 20GW in 2028, and then maintained this level until 2035. Based on this calculation, the installed CAGR in Germany will reach 32% from 2021 to 2025.

Under the superposition of multiple good news, the wind power sector was also driven up, up 1.97% by the end of the day.

Guangfa Securities pointed out that the new production capacity of silicon wafers and the increasing trend of operating rate have led to a supply gap of silicon materials. This round of price increases in the industrial chain once again confirms that the off-season is not weak in the first quarter. It is expected that the global photovoltaic installed capacity will reach more than 230GW in 22 years, an increase of more than 35% over the same period last year.