FOB China prices for both mono PERC and n-type M10 wafers have temporarily stabilized after five consecutive weeks’ decreases, assessed at $0.203 per piece (pc) and $0.197/pc, respectively.
Meanwhile, the prices of mono PERC and n-type G12 wafers experienced further declines, dropping by 1.49% and 4.68% respectively week to week, now reaching $0.264/pc and $0.285/pc.
Image: OPIS
According to a market source, the continued price decline of G12 wafers can be attributed to reports indicating that a major G12 wafer manufacturer holds the largest inventory among industry producers.
According to OPIS’ market survey, the average transaction prices of mono PERC M10 and n-type M10 wafers in the Chinese domestic market remain around CNY1.625 ($0.22)/W and CNY1.583/, respectively. Despite wafer companies facing financial losses for about three months, the recent significant drops in polysilicon prices have helped alleviate their losses, as reported by an upstream source.
The wafer companies are currently facing losses of CNY0.1/pc to CNY0.15/pc on average based on the current prices of polysilicon and wafers, the source added.
Efforts to reduce production and clear wafer inventory are progressing slowly, according to a market observer. The current wafer inventory is still fluctuating between 3 and 4 billion pieces, approximately equivalent to around 28 GW. This is nearly two weeks' worth of production, as the Silicon Industry of China Nonferrous Metals Industry Association anticipates a wafer output of 63GW in April.
The current downturn may only see a breakthrough when some companies exit the market due to their inability to sustain the current loss situation with their cash flow, said a market participant.
A downstream source has shown interest in the first-quarter financial reports of various wafer companies, which are expected to be released soon. Reports are circulating that state one wafer producer incurred losses of 3 billion yuan in the first quarter, the source said, though this hasn't been confirmed yet. However, clarity on this matter is expected once the financial reports are made public.
（Picture: Veer）
