On 31 October, TCL Zhonghuan minimize the worth of its photo voltaic wafers for the primary time this yr, with this pattern anticipated to proceed as new manufacturing capability comes on-line throughout the trade.
The final time TCL Zhonghuan introduced its wafer costs was on 8 September. Now, the corporate is the primary amongst all wafer corporations to chop costs inside the yr.
Whereas there isn’t a synchronised discount in silicon materials costs on the upstream degree, it’s broadly believed within the trade that tight provide can be eased after a fast launch of latest manufacturing capability, with costs anticipated to be adjusted accordingly.
Upcoming worth adjustments throughout industrial change
TCL Zhonghuan’s newest quote confirmed that its 150μm 218, 210, 182, 166 p-type silicon wafers have been RMB10.51/piece, RMB9.73/piece, RMB7.38/piece and RMB6.13 /piece, respectively.
In contrast with the earlier announcement on 8 September, the worth was down by RMB0.35/piece, RMB0.33/piece, RMB0.24/piece and RMB0.2/piece, respectively – a discount of between 3.1% – 3.2%.
| Date | Wafer thickness | 218.2 | 210 | 182 | 166 |
| 31 October 2022 | 150μm | 10.51 | 9.73 | 7.38 | 6.13 |
TCL Zhonghuan has additionally dropped the worth of its n-type silicon wafers. Amongst them, the 150μm 210, 182, 166 n-type silicon wafers are quoted at RMB10.32/piece, RMB7.9/piece and RMB6.56/piece, respectively, down by RMB0.34/piece, RMB0.33 /piece and RMB0.28/piece in contrast with the earlier spherical of providing.
| Date | Wafer thickness | 210 | 182 | 166 |
| 31 October 2022 | 150μm | 10.32 | 7.90 | 6.56 |
| 31 October 2022 | 130μm | 9.89 | 7.64 | 6.35 |
The worth of 130μm 210, 182, 166 n-type silicon wafers was set at RMB9.89/piece, RMB7.64/piece and RMB6.35/piece, respectively, which is RMB0.35/piece, RMB0.33 /piece and RMB0.27/piece decrease than the earlier quote. In distinction, TCL Zhonghuan’s n-type wafers usually depreciated greater than that of p-type wafers, which could be a most of 4%.
It’s price mentioning that on 24 October, LONGi Inexperienced Vitality didn’t modify its mono silicon wafer costs. On account of diminished thickness within the cells, the worth has really elevated.
LONGi has cancelled its 158 silicon wafer, with TCL Zhonghuan now not quoting costs for the p-type 158 wafer both. The concerted transfer by the 2 main producers signifies a sharply shrinking marketplace for small-sized merchandise at a time when bigger ones are more and more dominating.
So, what sign does TCL Zhonghuan launch by way of the worth minimize?
Up to now, there was a powerful synchronisation between the costs of silicon materials and wafers, the place wafer worth follows the ups and downs of silicon materials worth. Nonetheless, this spherical of TCL’s worth minimize seems to haven’t come from any worth minimize within the silicon phase, at the very least in the meanwhile. In response to knowledge launched by InfoLink Consulting final week, the common worth of mono dense poly remained at RMB303,000/MT and is anticipated to stay flat this week.
There are numerous causes for the worth discount of silicon wafers. Trade evaluation famous that the next potentialities might have led to TCL’s ice-breaking worth minimize.
First, upstream silicon materials worth is lowering, which saves prices for TCL and allows it to chop its costs.
Second, extreme silicon wafer manufacturing capability out there has brought on stock backlogs and TCL has diminished its wafer worth with the intention to de-stock.
Third, the demand for modules has boomed in not too long ago yr, far outstripping provide, so price-cutting measures are used to seize a larger market phase, which recommend TCL has engaged in “worth battle” actions.
In truth, the wafer provide chain has been increasing quickly lately. The 2 main corporations, LONGi Inexperienced Vitality and TCL Zhonghuan, are planning to increase wafer capability to 150GW and 140GW respectively by the top of this yr.
As well as, upcomers like Shangji Automation, Shuangliang Eco-Vitality and JYT, additionally personal large-scale newly constructed capacities. In response to a tough estimation, complete wafer capability will exceed 600GW by the top of this yr.
Silicon wafer manufacturing capability has reached 482GW on the finish of the third quarter, up by 8% for the reason that second quarter, in keeping with the Silicon Trade Affiliation. After balancing the rise in working fee with the lower because of the pandemic, wafer manufacturing rose about 5% in October in contrast with September.
PV Infolink stated that whereas there wasn’t stock strain, issues are anticipated to alter on this month. There’s more likely to be growing and even irregular stock turnover strain, with extra strain on wafer gross sales accordingly.
