"Crisis" and "opportunity" often complement each other, the current downward cycle of silicon materials is still continuing, in the face of this turmoil, what different choices have different companies made?
文 / NE-SALON新能荟小编团
According to data from the China Nonferrous Metals Industry Association, as of this week, the transaction price of N-type material was between 41,000 yuan/ton and 45,000 yuan/ton, and the average price was 43,000 yuan/ton, down 5.08% week-on-week. The transaction price of N-type granular silicon was between 37,000 yuan/ton and 39,000 yuan/ton, and the average price was 37,500 yuan/ton, down 6.25% week-on-week.
The prices of monocrystalline compound feeding and dense materials also fell, falling by 5.85% and 4.36% respectively. The price of monocrystalline cauliflower has fallen by 9.16%, and the lowest price has come to 31,000 yuan/ton, almost breaking through the 30,000 yuan mark.
Behind the price drop is the imbalance between supply and demand in the market and the fierce price war between companies. With the rapid development of the photovoltaic industry, the production capacity of silicon materials has been greatly improved
According to the China Nonferrous Metals Industry Association, polysilicon production capacity has continued to expand since the beginning of 2023. However, the growth rate of downstream demand has not kept pace with the expansion of upstream supply, resulting in an oversupply situation in the market. Especially in the first quarter of this year, the total supply of polysilicon has been in surplus. Since the second quarter, polysilicon companies have increased the production ratio of N-type materials, and the new production capacity of leading manufacturers has been gradually released, making the imbalance between supply and demand in the market even more serious.
The sharp fluctuations in the market have also affected the downstream links. Wafer and cell prices continued to fall this week, with wafer production scheduled at around 63-65 GW in May, and some second-tier companies continued to reduce production. The price of high-purity quartz sand has plummeted, driving the price of silicon wafers to fall further, but so far, the effect of major manufacturers to destock is not significant. There is an imbalance between supply and demand of N-type cells, and prices are likely to continue to decline.
In this price turmoil, different companies have different strategies to deal with it. Against the backdrop of falling polysilicon prices, Tongwei chose to buck the trend.
On May 8, Tongwei signed a huge contract with nine subsidiaries of LONGi, which stipulates that LONGi will purchase at least 862,400 tons of polysilicon from Tongwei between 2024 and 2026. Based on the latest N-type silicon transaction price of 45,300 yuan/mt, the total contract value is about 39.1 billion yuan.
This move not only stabilized Tongwei's orders, but also strengthened its market position. It is worth mentioning that this is another major cooperation between Tongwei and LONGi after 2018 and 2022, which also shows the confidence of both parties in the future market and a high degree of trust in each other.
In stark contrast to Tongwei is the American company CubicPV. According to PV Magazine, CubicPV announced the end of plans to build a 10GW wafer factory in the United States due to a sharp drop in wafer prices and soaring construction costs.
In a public statement, the company said that in the future, the company will focus on the research and development of tandem solar modules, especially the stability, reproducibility and efficiency of silicon-perovskite tandem modules. In other words, the company will transform from a manufacturing enterprise to a research and development enterprise.
However, the CubicPV approach has also brought it a lot of troubles. The first is that some of the workers who have already been recruited will face being laid off due to the elimination of jobs related to U.S. factories. Secondly, due to the company's strategic shift, some of the procurement contracts that have been signed can no longer be performed.
In December, CubicPV and South Korean silicon producer OCI announced an eight-year supply agreement under which Cubic became OCIM's first U.S. customer to produce low-carbon silicon that meets U.S. standards. The contract is worth about $1 billion, and OCI commits to provide Cubic with the polysilicon it needs for its U.S. facility every year. But with the shutdown of the plant, the partnership between the two came to an abrupt end.
In the storm of the market, some companies take the opportunity to expand their market share, and some companies have withdrawn. For photovoltaic enterprises, how to find their own foothold in the price turmoil and how to respond to market challenges through technological innovation and strategic adjustment are problems that must be faced. I just don't know if this time, will the United States put the blame for the termination of the CubicPV project on China's head again? Source: NE-SALON XW