Q1 and Q2 of 2022, can be characterized as globally difficult periods for all many industries, and the solar market is not an exception.
Such events as the Russian Invasion of Ukraine, the Natural Gas Crisis in Europe, Zero COVID-19 policy in China in Q2 negatively affected the beginning of Q3. Numerous areas are still trying to solve the consequences of production and international logistics cargo delays.
Eco Green Energy prepared a short price PV modules price report based on current raw material prices, and freight cargo to get up-to-date about what to expect during the second half of this quarter (July- August 2022).
Polysilicon
This week prices for polysilicon are continuing to grow, including mono-grade polysilicon quotation that reached RMB 295/kg, which is nearly 3.57%, which is the highest point since 2021. Many polysilicon businesses focused on executing delayed orders, which is why some urgent orders faced price increases.
Source: EnergyTrend, 2022
Noticing the production and operation status of the polysilicon segment the price rise also was led by production delays that were caused by accidents, power restrictions, or equipment maintenance.
Even when production of multi polysilicon in June reached 61.6K, July is a month of significant increase. Due to the Energy Trends report, even with constantly releasing capacity, total polysilicon production will decline, which also will lead to a further price increase.
Wafers
The situation with polysilicon, especially its recent extra need, causes the price growth for wafers. Various wafer businesses are increasing their prices due to cost pressure, while the reduction of polysilicon production has also been transmitted to the wafer segment, where the corresponding production volume has been downward. Yesterday, M10 and G12 were respectively concluded at a mainstream price of roughly RMB 7.3/pc and RMB 9.65/pc.
Source: EnergyTrend, 2022
M10 mono-Si wafers remain under a structural short supply status and have thus elevated in average concluded prices.
Cells
Cell prices had fully risen this week, with mono-Si M6, M10, and G12 cells concluding at a price of approximately RMB 1.24/W, RMB 1.28/W, and RMB 1.24/W. The tendency for cost lifts fast, compared to the previous week they were 1.17/W, RMB 1.21/W, and RMB 1.175/W relatively.
Source: EnergyTrend, 2022
In addition, cell production and shipping were smooth, as many producers signed orders for July in advance at a small price increase of RMB 0.02/W.
Anyway, M10 mono-Si cells remain under a deficit status, and some businesses increase grow prices following the first-tier businesses up to RMB 1.22/W. Cell prices are likely to carry on with the inflation tendency as wafer prices further ascend.
Moreover, many PV module factories have stopped production because of the high price of cells and other raw materials.
PV Modules
What about modules, mono-Si 166, 182, and 210 modules prices are stable: RMB 1.8/W, RMB 1.95/W, and RMB 1.93/W respectively.
Source: EnergyTrend, 2022
Several PV module makers had started increasing quotations, where some 210 module quotations to more than RMB 2/W, yet the volume of concluded transactions is relatively small. As various upstream segments initiate a new wave of inflation, solar modules will increase prices alongside the additional elevation of polysilicon prices.
Glass
Glass prices remained sturdy this week, with 3.2mm and 2.0mm glasses sitting at RMB 28-29/㎡ and RMB 22-23/㎡.
Source: EnergyTrend, 2022
Freight cost
Furthermore, freight cost remains stable and even lower than in Q1 and Q2. Due to Freightos Data, at the beginning of July, the Global Container Index fell to USD 6,577 9 (-6%). Prices from China to European, and African directions keep balanced, while to South America increased (+4%).
Source: FBX Global Container Freight Index, 2022
To conclude the current situation with a Price increase
To sum up, Eco Green Energy suggests considering all the facts about the rice increase and placing the orders in July. As China has resumed its production, we observe a sharp price rise, and such a trend will be for the next two months.
Although the freight cost is under favorable tendency, there is some price lift for PV raw materials such as polysilicon, wafers, and cells. It is significant to consider the no rapid price drop during the end of July and August.
We recommend not to hesitate to confirm your orders as soon as possible to avoid unnecessary costs for your business.
Please note that Eco Green Energy will provide prices based on the current situation. We will not cancel or postpone the shipment.
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