Many distributors have recently told that the prices of solar modules, inverters, and trackers have risen to various degrees due to limited supply.
The supply of polysilicon will continue to be in tight balance in the latter half of this year. As the demand rose, upstream manufacturers lacks the momentum to reduce prices.
Aside from polysilicon, the price of accessory parts such as glass, adhesives , and cables have also seen a rise. It is foreseeable that in the next three to four months, the price of solar modules will increase, posing challenges to cost reduction of power stations.
1. Polysilicon
The price of polysilicon is basically stable this week. The transaction price of bulk orders has increased by about 1 RMB/kg, which has little impact on the industrial chain. According to the Silicon Industry Branch, most polysilicon manufacturers have signed their orders until the end of August or even early September. Most of the new orders signed this week are scattered orders and replenishment orders.
11 Chinese polysilicon manufacturers are currently in operation, while two in Xinjiang and Xuzhou are under maintenance and are expected to resume normal operations before the end of the month.
The Silicon Industry Branch stated that the annual demand for solar installations is expected to regulate the sharp price increase. Considering the tight balance between supply and demand of polysilicon, its price may fluctuate within a reasonable range.
Many experts said that as long as polysilicon manufacturers do not stop production due to accidents, the amount of polysilicon produced domestically and imported is able to meet downstream demand.
Yin Yeze, Deputy Editor-in-chief of Solarbe, pointed out that the fluctuation of weekly updated prices is inevitable. A significant change to the price of polysilicon is unlikely considering the overall situation in the latter half of 2021. The price may not be lower than 200,000 RMB/ton.
2. PV glass
On August 17, Tangshan Jinxin Solar Glass Co., Ltd. issued a price adjustment notice. Starting from September 1, the price of 3.2mm PV glass sheet will be increased by 4 RMB per square meter, and the price of 2.0mm PV glass sheet will be increased by 3 RMB per square meter.
It could result in 0.02 RMB/W increase for single-glass modules and 0.03 RMB/W for double-glass modules. Industry insiders pointed out that the cost of PV glass could vary in different manufacturers and in different sizes. “In the short term, the price of PV glass may fluctuate, but the long-term supply far exceeds the demand, so the price won’t be too high.”
According to Solarbe Consulting, since the end of March, the price of PV glass has fallen sharply. The transaction price has remained at 22 RMB/m2 (3.2mm) and 18 RMB/m2 (2.0mm) for several weeks.
Due to policy adjustments, the production capacity of PV glass surged. Yin Yeze said that if the production capacity remains at 50,000 tons by the end of 2021, it can meet the demand for at least 390GW single-glass modules or 310GW double-glass modules. There is no need to worry about glass supply in the short term.
3. Adhesive
Today, Huitian New Materials issued the “Notice on Price Adjustment of Photovoltaic Adhesive Products”, announcing a price increase of more than 10%.
The above notice attributed the price increase to the strong willingness of raw material manufacturers to increase prices, and the continued high price of organic silicon, with no trend of falling.
According to the secretary of Huitian New Materials when answering investors’ questions, the company’s PV adhesive business has grown rapidly. The PV products account for the largest proportion of the company’s revenue. Its market share has reached 40%.
The production cost of modules will rise in the future. However, considering the limited cost of adhesives in modules, it is recommended that PV practitioners pay more attention to the price changes of polysilicon, silicon wafers, and cells.