Hello and welcome back to my blog, a humble resource hub that dives deep into the world of solar companies, solar panels for your home, and everything else you need to know about the burgeoning solar industry around the globe.
Today, we’re examining some intriguing developments from the photovoltaics (PV) module supply market. Let me start with a quick clarification; when we talk about solar, PV modules play a pivotal role. These are the assemblies of photovoltaic cells deployed in a framework for installation. Keen to discover the trend in the pricing of these modules? Read on!
China, a global giant in solar production, saw a decrease in FOB prices for PV wafers this week. The cause? An oversaturated supply market. The prices of monocrystalline PERC G12 wafers dipped 2.24% week-over-week, while N-type M10 and G12 wafers experienced a 2.82% and 2.08% slump, respectively.
But wait! There was an exception. Monocrystalline PERC M10 wafers held steady at their price thanks to manageable production output. The situation warrants a mention – because, in this dynamic industry, steady prices can sometimes be a breath of fresh air!
The wafer market today is defined by high inventory levels, towering production costs, and increased operating rates – a triad of elements that can strain any solar company’s supply chain. To secure orders, wafer producers have been forced to offer significant discounts on quotations – a challenge, especially for larger firms.
Adjusting to the throbbing heartbeat of the market, some manufacturers even resorted to quoting below the mainstream price to boost sales. This tactic was primarily observed with N-type M10 wafers, particularly small-scale manufacturers.
The wafer market’s average operating rate has currently crossed the 85% mark driven by a rebound in downstream demand. The strong stance of polysilicon prices has necessitated high operating rates, functioning as a strategy to mitigate non-silicon production expenses, an industry insider observed.
An interesting trend emerging from market insights suggests that downstream manufacturers are asking wafer producers to tweak the size of current M10 wafers—a move intended to boost the power generation area of modules. This could lead to the birth of differently sized wafers that can be produced without costly equipment updates.
Looking at the future, it’s clear that wafer inventory will likely continue to swell. Some factories are considering production cuts to keep inventory in check. However, whether the production output in the upcoming month can match the projected 70 GW remains to be seen.
The increasing competitiveness in the solar array for home market, coupled with these industry-wide trends and strategic adjustments, makes for an exciting time in the world of solar. As someone deeply passionate about renewable energy and sustainable living, I can’t wait to see what the solar industry has in store for us next. Until then, keep harnessing the power of the sun for a brighter, greener future!
Original Articlehttps://pv-magazine-usa.com/2024/03/18/wafer-prices-stable-to-soft-on-market-oversupply/
