PVinsights : China demand recovery is not good enough to enhance price.
At this moment, China domestic demand is not strong enough to improve the module price further as project developers are not able to have fully support from Chinese bankers.
Multi module price kept stable but mono module price steps down this week. At this moment, China domestic demand is not strong enough to improve the module price further as project developers are not able to have fully support from Chinese bankers. On the other hand, the recent CNY appreciation helps Chinese module prices in USD term. In Europe, since the winter is coming, PV system installation is slowing down. Furthermore, in Japan, the grid connection pending continues to hold the speculation on solar demand. Hence, with the decreasing demand in Japan and Europe, solar module prices are facing the correction now, especially for mono modules. Moreover, with solar module price premium in the US, some solar module makers, especially Indian players, are doing price competition in the US for taking more profits. As a result, CNY appreciation offsets multi module price drop outside China to keep multi module price stable but mono module price heavily affected by Japan and Europe market goes down this week.
Multi cell price is almost unchanged but mono cell price continues to decrease this week. Without the significant solar module price improvement, solar module makers are difficult to accept higher cell prices. On the other hand, China domestic demand, mainly for multi modules, helps multi cell demand solid so as to maintain multi cell price stable. However, mono cell demand in Japan and Europe is decreasing dramatically but solar cell makers are still producing lots of mono cells, because mono cells with the better margin than multi ones. With the solid supply and weak demand, mono cell price keep the continuous downtrend.
Overall wafer prices are stable this week. Due to the weak Chinese domestic demand recovery, major multi wafer makers are not able to raise their price quotes. Moreover, the stable downstream PV component prices also force wafer buyers to purchase wafers with the stable price quotes. Therefore, multi wafer price stands still. On the other hand, the falling mono cell and module prices are putting price pressure on mono wafers recently. However, mono wafer supply seems to keep solid orders to consume their production output with full utilization rates. As a result, mono wafer price is flat as well.
Overall polysilicon prices go steady. At this moment, some solar wafer makers are not running their multi wafer production in full, because the current multi wafer prices can not help them cover their cost. With the stable wafer price, polysilicon suppliers realize that polysilicon shall be even.