Category
Author InfoLink
Updated February 09, 2022

Polysilicon

Concentrated demand driven by stockpiling activities lets up as the Lunar New Year holidays end. Supply and demand gradually return to normal, as polysilicon buying spree eases.

Most ingot manufacturers sealed polysilicon orders for February. Only few orders, accounting for small amounts and shares, are yet to be settled. Some ingot manufacturers had been negotiating for March orders before the Lunar New Year, considering their new capacities commissioned recently, and thus increasing demand for polysilicon. Some new players may get ahead to secure polysilicon supply.

As prices in the mid-stream recovered faster, price quotes from major polysilicon manufacturers mostly came in at RMB 238-245/kg in February. Actual trading prices may be lower, but still increased evidently on last month’s level. Prices for mono-grade polysilicon may continue to see mild fluctuations, which hinge on further development of supply-demand relationship in the upstream.
 

Wafer

Both Tier-1 and Tier-2 mono-Si wafer makers have been raising prices since January, with Longi, Zhonghuan, and other manufacturers revising pricings more frequently. Before the Lunar New Year holidays, Zhonghuan raised pricings subsequently on January 12 and January 26, with Longi following suit on January 16 and January 27. Other manufacturers also raise mono-Si wafer prices at varying degrees.

To date, prices for the 210mm/160μm format averaged at RMB 8.45/piece, 182mm/165μm at RMB 6.35/piece, and 166mm/165μm at RMB 5.28/piece.

Wafer production has been steady since the end of the Lunar New Year holidays. Utilization rates of some manufacturers’ ingot facilities failed to recover. Still, overall ingot facility utilization rates in the latter part of February markedly increase. The wafer sector sees headway in sealing and delivering orders, proactively managing to sign orders at the high-price range. 
 

Cell

Upstream prices stay on an upward trend after the Lunar New Year holidays, allowing trading prices for M6, M10, and G12 cells to rise marginally, coming in respectively at RMB 1.07-1.1/W, RMB 1.1-1.12/W, and RMB 1.1-1.12/W, namely RMB 0.01-0.02/W of increases on levels prior to the Lunar New Year. The upward price trend will remain unrest afterwards, with trading prices continuing to rise slightly, sitting at RMB 1.13-1.14/W in overseas markets.

Sales gains this month for the cell sector in markets such as South Korea and India, as boosted by demand overseas. Against this backdrop, averaged prices overseas are revised upwardly this week, to USD 0.158-0.159 for M10 cells. Order volumes for cells sustained, bolstering that of wafers. Therefore, wafer prices can hardly see significant declines in the short term.

Cell prices peaked above RMB 1.1/W last year, whilst module prices sat at around RMB 1.95-2/W. Therefore, given acceptance of the module sector, cell prices are not likely to reach RMB 1.13-1.14/W in China and will remain stable in recent terms. Meanwhile, overseas markets will enjoy premiums, thanks to strong stockpiling demand in India.

In response to wafer price hikes, prices for multi-Si cells stepped upwardly to RMB 3.7-3.8/piece, USD 0.53-0.55/piece, and saw continual rising momentum in the future. 
 

Module

Pressure has been building in the module sector since the end of the Lunar New Year. Prices for BOM, such as backsheet and glass, are poised to rise due to raw material price hikes. Doubled with rising supply chain prices, module prices are set to go up as well, increasing by RMB 0.02-0.03/W in China, and USD 0.002-0.004/W in overseas markets.

As the market freshly returned from the holidays, prices have seen no changes this week, with module makers and end users remaining in standoffs. Presently, some makers wind down purchases for raw materials, whilst others plan to trim down utilization rates from the second half of February to March. End users appear increasingly reserved in the face of rising prices. 

In China, Tier-1 makers mostly delivered 166mm glass-backsheet mono-Si modules at RMB 1.8-1.88/W, and glass-backsheet mono-Si modules rated beyond 500 W at RMB 1.88-1.9/W. 166mm products saw market share shrinking, with manufacturers intent on modifying production capacity in the first half of the year. The decreased production volume drove prices for 166mm modules to approach that of 182mm ones.

Prices stabilized in overseas markets. European and Indian demand increased for the first quarter. Prices for glass-backsheet modules rated beyond 500 W came in at USD 0.27-0.275/W for January by far.