Photovoltaic industry chain prices stabilized

PV Insights: Trading on the Christmas Holidays is Light This week, the European and American transactions during the Christmas holiday period were light, and the prices in the entire industry chain were stable. Monocrystalline wafers and solar cells still maintained good demand. In the near future, companies no longer cut prices, but further reduced capacity utilization. At the same time, although silicon wafer companies are still suffering from long-term polysilicon production, silicon wafer companies are no longer willing to lower their prices, and polysilicon prices have stabilized at current prices.

Solarzoom: inventory has been low, the price gradually stabilized silicon materials, according to the current market conditions, manufacturers basically realized blindly lower prices and can not bring order transactions, the key is limited demand, so the recent price is basically stable, the actual transaction is also in small quantities Mainly. For wafers, there was no major move in the trading market this week, and recent inquiries have not changed significantly from last week. In the current market, the downstream demand is still unsatisfactory, and suppressing the rebound of silicon wafer prices may drag down the price. However, 80% of silicon wafer companies now choose to cut production and limit production, and there are even measures to close down production from closed storage. Therefore, the market circulation inventory is not Large, enhance the resilience of the silicon price, in the short term the price of the wafer may still remain weak and stable. In terms of battery cells, the recent market demand for solar cells has been relatively stable. With the announcement of the second batch of Golden Suns, project companies have gradually entered the preparation phase. However, the overall market volume was light, and there was no strong support for the lack of power. There was limited room for deep declines. In addition to maintaining some normal orders, some domestic battery companies also control production lines to avoid inventory overstock. Judging from the market liquidation this week, the transaction has no follow-up, and the tendency of companies to hold flat quotes is obvious. On the component side, the price of domestic component prices was stable this week. The monopoly module price has not changed much overall. Half of December had already passed. The overall market slumped. Before the policy surface became clear, the wait-and-see atmosphere of terminal companies and domestic component factories remained strong, and the market turnover remained depressed. However, compared with the previous period, prices have fallen, and the inventory of backlog components of various enterprise components has been significantly low, which also weakens the momentum of component decline. In terms of ports, the current inventory is basically low, and domestic inventory levels are not large, most companies are also reluctant to take inventory as a bet, more to take a wait-and-see status, dare not blindly move, but some companies also add battery auxiliary material stocks , If there is a demand, it can basically reflect the production of component orders. In the short term, the price of components will probably continue the current price level.

Policy news: Concerned about new energy distributed generation planning Due to the trade war and the sluggish overseas markets, the country is currently studying how to further stimulate the domestic market, the introduction of new energy distributed generation plan will effectively stimulate domestic demand, is currently under discussion , can continue to pay attention.

The risk suggests that the price of photovoltaic products will further decline in risk and the trade war will further escalate.

Investment advice: Maintain the solar industry's “neutral” rating The recent rebound in the solar sector has taken place. From the fundamental point of view, the industry price has started to enter the bottom. We think the price may be in the process of bottoming, but due to the arrival of the traditional off-season, the industry The rebound in prices requires strong demand stimulus, so we can further observe changes in prices and maintain the industry's “neutral” rating.