Reduce Silicon Material Price to Ensure Market Demand

Silicon material should reduce to 180,000 RMB/ton to ensure the annual market demand.

According to statistics from the Silicon Industry Branch of China Nonferrous Metals Industry Association, in the past four weeks, the prices of different grades of silicon materials have risen by nearly RMB 10,000/ton. At the same time, in January, the two leading companies had two rounds of price increases for silicon wafers, which far exceeded the cost increase caused by the price increase of silicon materials. Among them, the cumulative price of 166 silicon wafers increased by up to 8.16%, the cumulative increase of 182 silicon wafers was up to 12.28%, and the cumulative increase of 210 silicon wafers was 11.04%.

A number of industry experts said that the reason for this is that domestic and foreign terminal demand rose at the end of the year, and some manufacturers increased their inventories during the Chinese New Year holiday. "In fact, the overcapacity in the silicon wafer segment is more serious than that of batteries and modules, exceeding the global terminal demand by about double. It is expected that the price of silicon wafers will be difficult to maintain at the current level for a long time, and price reduction is the general trend. It is recommended that relevant companies in all links control the inventory reasonably to ensure subsequent profit margins.”

In general, the high prices in the upstream of the industrial chain have affected the terminal demand and reacted to the upstream. The only solution is to reduce the price. Only by further releasing production capacity and lowering prices in the upstream can we fully open up the photovoltaic market demand, revitalize the entire industry chain, and especially make new production capacity useful and avoid large-scale excess.