In a new weekly update for <b>pv magazine</b>, OPIS, a Dow Jones company, provides a quick look at the main
PV Magazine International 12:26 am on June 3, 2024
PV Magazine reports solar wafer prices falling amid global trade tensions, with OPI highlighting decreasing costs for M10 and G12 wafers. Despite low sale intentions due to high inventory levels (5 billion pieces), some manufacturers have reduced operating rates. Wafer shortages may impact Southeast Asian cell exports to the U.S., leading firms to consider setting up factories abroad.
- Wafer Price Decline: Falling prices for M10 and G12 wafers amid trade complexities.
- High Wafer Inventory Levels: Over 5 billion pieces, influencing sale strategies.
- Operational Adjustments: Reduced operational rates to manage inventory amidst wafer supply challenges.
- Potential Market Impact: Trade restrictions may affect Southeast Asian cell exports, prompting manufacturers to explore international expansion options.
- Competitive Pressures: Manufacturers evaluating strategic moves such as setting up overseas production facilities in response to trade uncertainties.
**Category:**
- Solar
Response:
Wafer prices have continued their downward trend, with a recent report from PV Magazine and OPI's analysis highlighting decreasing costs for Monocrystalline (M10) and Polycrystalline (G12) solar wafers due to complex trade situations globally. The report also touches on several consequential market developments:
- **Wafer Price Decline**: M10 wafers have seen their price drop from $375/m in September 2023 to a low of $295/m, while G12 wafers' cost has decreased from an average of $200/m earlier this year to the current range between $162-168/m. These declines reflect the challenging trade environment and its impact on solar panel manufacturing.
- **Inventory Levels**: With over 5 billion wafers in inventory, a substantial accumulation has led wafer suppliers to adopt cautious sales strategies as they aim to balance supply with demand. This is indicative of the market's current state of uncertainty and restrained activity.
- **Operational Adjustments**: Some solar wafer manufacturers have opted to cut down their production rates, which OPI suggests may be a measure taken in response to inventory pressures. Reduced operational capacity could help prevent overstocking while the market recovers from these price fluctinas and trade disruptions.
- **Market Impact on Cell Exports**: The report also anticipates that upcoming global trade policies may hinder Southeast Asian cell exports to the United States, potentially affecting the entire solar industry chainfrom wafer production to module assembly and final installation in markets where these cells are utilized.
- **Strategic Moves for Companies**: Faced with uncertain trading conditions, wafer producers are evaluating strategic options like establishing manufacturing facilities outside of Southeast Asia, such as the United Arab Emirates, to circumvent trade barriers and maintain competitive edge in an ever-evolving industry landscape.
In summary, the ongoing decline in solar wafer prices is interwoven with a complex web of factors including high inventory levels, cautious market strategies by suppliers, potential export challenges, and adaptive measures taken by manufacturers to navigate uncertainties within the international trade domain.
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https://www.pv-magazine.com/2024/05/31/solar-wafer-prices-continue-to-soften-complex-international-trade-situation-sparks-concerns/
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