Silicon Prices Plunge Nearly 20%, Component Prices Record Low

11, the Silicon Branch of the China Nonferrous Metals Industry Association updated the price of polysilicon. The average transaction price of single crystal dense materials during the week was 67900 yuan/ton, down 15.23 from the market price two weeks ago and 61.46 from 176200 yuan/ton at the beginning of the year.

[supply and demand imbalance, price approaching cost line]]

After nearly three years of expansion, the capacity of the photovoltaic downstream industry chain has exceeded market demand. According to CCTV News, in the first three quarters of 2023, the national output of silicon materials, silicon wafers, batteries and components increased by more than 70% year-on-year. Customs data show that China exported 19.8 GW of photovoltaic modules in September, up 14.5 percent from August 17.3 and 55.9 percent from September 2022. Cumulative exports reached 157.7 GW in January-September 2023, up 29.9 per cent from the same period last year.

major markets such as Europe and the United States, news of huge component inventories has been reported many times, after an agency issued a report: as of the end of August 2023, the total installed capacity of all unsold photovoltaic modules of European photovoltaic module dealers has increased to about 80GW. Overlay the recent decline in traditional energy prices, the future of overseas market demand is not optimistic.

silicon price scenery is no longer, related enterprises are slowing down the pace. On the evening of October 31, Daquan Energy announced that the production date of Baotou Phase II 100000 tons of high-purity polysilicon project was postponed to the second quarter of 2024. Earlier, Tongwei announced the termination of the 16 billion yuan fixed increase plan (originally planned for 200000 tons of high-purity crystalline silicon project, Yunnan green energy project). The silicon chip giant TCL Central sold its 27% stake in polysilicon assets (Xinjiang Goens Energy Technology Co., Ltd.) at a low price of 0.6966 billion yuan.

[the whole industry chain fight, component prices repeatedly record low]]

photovoltaic industry chain price "avalanche" not only exists in the upstream link, and even the end of the industry chain component link prices have fallen sharply. Recently, the opening results of the third batch of centralized bid opening of Huadian Group, a central enterprise, in 2023 showed that the lowest bid price for double-sided bidding of N-type components was reduced to 1.08 yuan/watt, and the lowest bid price for single/double-sided price of P-type components was 0.9933 yuan/watt. The emergence of this price not only marks the component price into the "one yuan" era, but also means that the photovoltaic industry chain has begun to enter a comprehensive "price fight" stage.

is not difficult to see, many enterprises in order to clean up inventory as soon as possible, has been at a "loss sale". After this silicon price plunge, component quotes may continue to be explored. In the last quarter of 2023, the trend of all links in the photovoltaic industry chain will also be affected by changes in the policy environment and fluctuations in international market demand. Taking the component link as an example, domestic demand will decline in December, and demand for the Spring Festival in January will also be affected. Affected, so the price may be lower in the later period.