Solar Cell Prices Steady in Quiet Market

Activity in the Chinese solar cell market was quiet as most traders remained on the sidelines, unsure if prices had bottomed out. Demand remained tepid as most market participants had no urgency to replenish stocks.

Most cell manufacturers have liquidity problems, and although wafer prices have reached record lows, they have not been able to take advantage of the lower prices to build up inventories, according to one market veteran.

Integrated manufacturers that used to produce their own solar cells are now more likely to buy cells on the market, as buying them is cheaper than producing them in-house, the source added. Some cell manufacturers have resorted to OEM production to maintain operating rates despite production losses. The OEM production price of TOPCon M10 cells fell to CNY 1.4 ($0.19)/unit, below production costs of CNY 1.6/unit, according to a market veteran.

OPIS assessed FOB China Mono PERC M10 prices stable at $0.0390/W, FOB China Mono PERC G12 prices unchanged at $0.0414/W, while FOB China TOPCon M10 prices were assessed 1.73% lower at $0.0398/W, week-on-week.

High inventories are expected to put further downward pressure on cell prices in the coming weeks, even as cell makers reduce operating rates in an attempt to restore the supply-demand balance. In addition, module makers are expected to further reduce their operating rates in June, which will result in lower demand for cells.

According to the Silicon Industry of China Nonferrous Metals Industry Association, cell production in China in May was 62 GW. In the Chinese domestic market, Mono PERC M10 cells were priced at around CNY 0.313 CNY/W, while TOPCon M10 cells were around CNY 0.320 CNY/W, according to OPIS market research.

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