Polysilicon prices declined this week, falling back from a one-week rise as depressed downstream put the prices on track for correction by month-end. Both buyers from multi- and mono-crystalline wafers were pressurized from the downstream and turned more cautious on polysilicon procurement in order to prevent from the risk of high-price inventories. Since the effect of environmental inspection and annual maintenance in China gradually weakened, the tight supply no longer supported the polysilicon prices amid waning demand and weakening RMB this week.
Multi-crystalline wafer price deflation deepened this week as downturn in the cell market worsened because of OEM order cut by major buyers. Multi-crystalline wafer buyers turned more conservatively on wafer procurement and considered reducing orders at the same time. The transition to diamond wired wafer further dampened multi-crystalline wafer market. On signs of weakening downstream demand, mono-crystalline wafer prices fell on concerns over possible supply glut.
Multi-crystalline cell prices pointed lower and mono-crystalline ones fell after new price quotes in China added to evidence that global decrease was continuing steadily with increasing price pressures in the downstream. Confidence among solar cell manufacturers retreated in October to match a downstream last seen in early 1Q17, further evidence that the prices were losing momentum caused by stronger USD and weak overseas demand. The transition to the cells using diamond wired wafer also dragged down the prices as more manufacturers showed their favor to lower material costs. Mono-crystalline cell prices fell on the clearly declining mono-PERC cell prices as the new EU MIP welcomed Chinese cell players to join the Euro market. Furthermore, the aggressive capacity expansion on Mono PERC cell in China also triggered the price competitions and raised concern on supply glut.
Multi-crystalline and mono-crystalline modules entered a bear market on signs that declining demand in China and overseas. In Japan and Europe, the downstream demand remained weak and the strength of solar market calls for continued gradual decrease in prices due to subdued installation data. New taxes on materials and the investigation on anti-dumping and countervailing, on top of uncertainties over the developers' existed auction contracts with the local governments, are denting India's PV deployment as the third-biggest center for solar development in the world. While 1st tier Chinese suppliers were more conservative on price reduction, some 2nd tier suppliers gradually intensified the price competitions in the emerging countries. Mono-PERC module prices suffered a bigger drop amid expanding capacity and worsening the supply glut. The demand declines were clearly shown especially in Japan, EU and China.