Single polysilicon film hit the price war to accelerate PV parity online

Starting from the end of last year, the price war of silicon wafers was first provoked by the monocrystalline silicon wafer company Longji shares, and the polysilicon wafer camp represented by GCL and Yingli quickly followed up. After several rounds of adjustment, in a short period of one month, the price of monocrystalline silicon wafers fell by 0.8 yuan per piece, a drop of 14.3%; the price of polycrystalline silicon wafers fell by 12% to 15%. However, the industry is generally optimistic about the photovoltaic industry in the second quarter, that the price of silicon wafers is expected to stop falling. Since the beginning of the year, the price of single polysilicon has started a wave of price cuts. Last week, the polysilicon film was a price per day. The latest offer has fallen below 4 yuan per piece, and the weekly decline is over 5%. In desperation, monocrystalline silicon wafers continue to choose significant price cuts to reduce the price difference with polysilicon wafers. Affected by this news, the single crystal leading Longji shares closed the limit yesterday morning. In the industry view, active price cuts are a market competition strategy for silicon wafer manufacturers, and an inevitable trend in the industry. In order to survive this price war, the only way is to continue to reduce costs and increase efficiency, and promote the era of cheap Internet access. The price of silicon wafers plunged for a month. This round of wafer price war began at the end of last year. At that time, Longji shares announced that from January 1st, the price of monocrystalline silicon wafers was reduced by 0.2 yuan/piece. After adjustment, 180um monocrystalline silicon wafers were executed at 5.4 yuan/piece, and 190um monocrystalline silicon wafers were executed at 5.55 yuan/piece. Shortly thereafter, the price was lowered by 0.2 yuan/piece. During this period, the polysilicon wafer camp represented by GCL, Yingli, etc. quickly followed the price cut, from the price of more than 4.7 yuan per piece to the price of 3.8 yuan to 4.1 yuan per piece on Saturday. Just one day later, Longji immediately announced that the monocrystalline silicon wafer was once again reduced by 0.4 yuan/piece. After adjustment, the 180um monocrystalline silicon wafer was performed at 4.8 yuan/piece. At this point, the price of monocrystalline silicon wafers fell by 0.8 yuan per piece in just one month, a drop of 14.3%; the price of polycrystalline silicon wafers fell by 12% to 15%. According to the statistics of PVinfoLink, the price difference of single polysilicon sheet was increased to 1.1 yuan/piece before the price cut, and then reduced to 0.7 yuan/piece to 0.8 yuan/piece. "The price difference between single polysilicon wafers is usually 0.8 yuan per piece. The reasonable price difference currently recognized by the industry should be 0.3 yuan to 0.4 yuan per piece." In the gap between the 2017 China Energy Communication Conference held the day before yesterday, the Poly Society was interviewed by the Shanghai Stock Exchange reporter. Lu Jinbiao, vice president of Xin, responded to the price war of this round of wafers. He said that the recent price cuts in this round of wafers are related to the market's traditional off-season in the first quarter and the downstream components have cut prices. Despite this, the company's wafer orders are still very full, the price cut is to allow the downstream to have a certain profit margin. The low-priced silicon wafer of 3.8 yuan / piece is actually very small, which is caused by some small companies in the market to be rushed to clear the library. In fact, the timing of GCL-Poly's choice of price cuts is the time when the orders for diamond wafers on the Diamond Line are still in demand, which is unexpected in the industry. After the latest offer from GCL, the other polysilicon chip makers in the market began to move closer to the price of GCL to maintain the price/performance advantage. “The industry is indeed competing to cut prices.” Liu Yong, senior vice president of Zhonglai Co., and general manager of Zhonglai Optoelectronics, told reporters that from the public financial information of some enterprises, the profits of photovoltaic upstream such as silicon materials and silicon wafers in the past few years. Higher, there would have been room for price cuts. The price reduction of silicon wafers will also be transmitted to the downstream sectors of the industry, including batteries, components, and terminal power stations. In his view, PV bidding is currently based on electricity price bidding, investors are more concerned about the cost of electricity, the latter is a long-term trend. Under this circumstance, all links in the entire supply chain will inevitably be subject to certain price adjustment pressures, and the price cuts are normal. In the long run, the decline in the price of the photovoltaic industry chain is an inevitable trend, which can be achieved through two ways: one is to further compress the high profits of each link, and the other is to reduce the cost of electricity through technology upgrades. The second quarter is expected to stop falling for the next few quarters of the photovoltaic industry, the industry generally believes that it will gradually improve. "From the perspective of the big environment, all countries in the world have high hopes for the development of the photovoltaic industry, but there will be fluctuations in each quarter. The overcapacity in the downstream, the price drop in all links and the untimely payment of subsidies in the terminal market will bring to the market. Staged fluctuations.” Liu Yong said that the photovoltaic industry is usually the weakest in the first quarter, and began to improve after the second quarter. The third quarter is the best season, and the fourth quarter has slowly turned weak. Yang Liyou, general manager of Jinneng Technology, told reporters that the main driving force of the price war in the photovoltaic market is to increase the cost reduction space through technological advancement. Active price reduction is a market competition strategy for silicon wafer manufacturers. He expects that in the first quarter of this year, due to multiple factors such as PV benchmark price adjustment, winter shutdown, and Spring Festival, the market will be more dull, while in the second, third and fourth quarters, it will be subject to “630 grabs”, front-runner project shipments, and “1231 grabs”. "The market will be active again after the stimulus, and the installed capacity is expected to be the same as last year. "At present, the entire market is still optimistic for the second quarter, and the price cut may continue until the Spring Festival." Lu Jinbiao said. Zhuang Yinghong, director of the global market of Dongfang Risheng, believes that the reason for the price cuts of photovoltaic products is that the country has set a target for affordable Internet access, the second is the research and development progress of photovoltaic technology from product companies, and the third is that it attracts customers better because of low prices. . "In our view, the only way to survive this price war is to further reduce costs and increase efficiency. It is expected that in the next few quarters, efficient products in the photovoltaic market will spring up, and product prices will still fall. Until the arrival of the era of cheap Internet access." Zhuang Yinghong said. Yuan Quan, director of Sumeda's energy market, told reporters that better technology needs to reduce costs by expanding application levels under capital support, which in turn will promote further growth in application magnitude. The newly issued benchmark price of the country and the bidding price of the components of Guodiantou have pointed out the direction for the upstream of the photovoltaic industry and clarified the space for cost reduction. In his view, it is imperative to lower the book, but it still needs the joint efforts of the whole industry.

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