In a new weekly update for pv magazineOPIS, a Dow Jones company, provides a brief overview of the major price trends in the global PV industry.
According to the OPIS Global Solar Markets Report published on May 19, Free-On-Board (FOB) China n-type M10 and G12 wafer prices remained unchanged week-on-week at $0.139 per unit and $0.169/unit, respectively.
Meanwhile, the newly launched FOB China n-type 210R wafer price was set at $0.148/piece.
Chinese wafer makers have increased their operating rates since May, leading to a corresponding increase in wafer inventories as downstream demand has yet to show meaningful improvement, according to market participants.
However, market sources stressed that the recent increase in wafer production rates and inventory accumulation should be seen as a strategic move by manufacturers rather than a sign of increasing oversupply pressure in the weak market environment. Total wafer inventory levels were reported to fluctuate within the mid-20 GW range.
Wafer makers are currently using polysilicon sourced at price levels widely considered near the bottom by the market, limiting the risk of further devaluation of the raw materials, a market source said. At the same time, manufacturers are deliberately building inventories in preparation for the traditionally stronger demand season expected towards the end of the third quarter.
The source added that the additional inventories are being built up with the expectation that they can gradually be sold at stable or potentially higher prices.
Other market observers remained more cautious, noting that while demand from China’s domestic utility-scale solar projects has shown some improvement, the recovery remains limited. They warned that if the current slower-than-expected pace continues until the end of the second quarter, the possibility of another decline in waffle prices cannot be ruled out.
Another uncertainty on the demand side arises from the solar cell market. Industry participants noted that silver prices have risen again in recent weeks, adding to cost pressures for cell makers.
With the wafer sector already facing the most severe margin compression in the photovoltaic supply chain, market sources say cell manufacturers will not be able to effectively offset these costs through lower wafer purchasing prices.
As a result, some sources expect it is increasingly likely that some cell manufacturers will cut business rates in the coming period to limit further losses.
In addition, market participants noted that a leading integrated manufacturer’s module prices continued to decline this week, continuing to dampen specialty cell manufacturers’ sales price expectations and further limiting their production flexibility.
OPIS, a Dow Jones company, provides energy prices, news, data and analysis on gasoline, diesel, jet fuel, LPG/NGL, coal, metals and chemicals, as well as renewable fuels and environmentally friendly feedstocks. It acquired assets with pricing data from Singapore Solar Exchange in 2022 and now publishes the OPIS APAC Solar Weekly Report.
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