Q3 can be characterized as a period of price growth for the PV panels industry. At this stage, in Q4, Eco Green Energy observes solar modules price decreasing for the last month. It greatly influences the entire PV supply chain and the behavior of the market as a whole.
In fact, the price directly depends on the PV module’s raw materials such as cells, EVA, glass, frame. The cost for sea freights is not excluded from this list. One more important factor that is worth adding – modules and their components’ availability offered cannot meet present needs.
We prepared a short reference for you on what to expect soon.
Cells
Cells are the essential component of solar modules. That is why solar panels’ price highly depends on cells’ cost flexibility, almost at 60%-70%. For December, according to the PV InfoLINK group, the price in this segment is loosened. Moreover, the market is in a wait-and-see mode because manufacturers prefer to see how low the price trend can down. Prices may decline further in December.
EVA
According to WeChat Official Accounts, the price increase for EVA was fixed in September 2021. At the end of October, the price has started to decrease. Even though it’s possible to observe this trend, the cost still achieves the highest point of price, compared to previous months.
Aluminum frame
Another reason for solar modules price decreasing is the current aluminum cost. Eco Green Energy uses Grade A anodized aluminum, with 1.5 mm thickness. The aluminum price, compared to previous months, has dropped. Due to Markets Insider, the cost change over the selected period is -0.47%.
Freight cost
The peak of the freight price was observed at the beginning of October, then this trend has started to diminish. Nowadays, the shipment cost for Asian countries is stable with a slight rise; for European – balanced situation, and African – the price slowly has dropped.
In fact, some manufacturers have already had to cut their production capacities by 10 to 20 percent, resulting in fewer precursor materials that are urgently needed for module production.
Our conclusion
To sum up, Eco Green Energy suggests starting the Q1 PV module purchase plan this month based on several reasons. Firstly, because of the tendency of many manufactures to clean out their warehouses in the middle of December to get satisfying end-year financial results.
Secondly, it is a high possibility of price growth in January 2022 for the raw materials and shipment. The reason is that the demand is higher than supply, which promotes price rise. Also, the price escalation may be affected by the Chinese New Year because the companies would like to finish all orders before the holidays.
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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