China’s photovoltaic industry experienced its steepest week-on-week decline in silicon wafer prices so far this year after the May Day holiday, as production cuts failed to support prices amid weakening demand.

The average transaction price for N-type G12 monocrystalline silicon wafers fell to CNY1.35 (US 19 cents) per piece, marking a 7.5 percent drop from the previous week—a faster decline than anticipated—according to data released by the relevant branch of the China Nonferrous Metals Industry Association on May 8.

Silicon wafers serve as intermediate products between raw materials and solar modules, meaning their prices are influenced by both upstream and downstream market dynamics.

The data show that this year’s market downturn is worsening, with prices for some wafer types falling below levels seen in the fourth quarter of last year. The price of N-type G12R monocrystalline wafers touched as low as CNY1.12 per piece last week, below the mid-December price of CNY1.16. This suggests that efforts by producers to limit supply have failed to stabilize or raise prices.

The post-holiday plunge is primarily attributed to declining downstream demand. According to InfoLink Consulting, solar cell production is expected to reach 61.7 gigawatts this month, down 9 percent from April.

Looking ahead, the trend will depend on additional production cuts. In its weekly report, the CNIA branch warned that if prices for cells and modules continue to slide, silicon wafer prices are likely to remain on a downward trajectory.