Silicon Industry Branch: Market pessimism strong, silicon wafer prices extend decline this week.

On April 17th, the Silicon Industry Branch issued a statement saying that this week, the price of silicon wafers has dropped significantly. The average transaction price for N-type G10L monocrystalline silicon wafers (182*183.75mm/130m/256mm) was 1.22 yuan/wafer, a week-on-week decrease of 3.17%; the average transaction price for N-type G12R monocrystalline silicon wafers (182*210mm/130m) was 1.43 yuan/wafer, a week-on-week decrease of 5.92%; the average transaction price for P-type G12 monocrystalline silicon wafers (210*210mm/150um) was 1.63 yuan/wafer, a week-on-week decrease of 1.81%; and the average transaction price for N-type G12 monocrystalline silicon wafers (210*210mm/150m) was 1.53 yuan/wafer, a week-on-week decrease of 1.29%. The sentiment in the market for the following week is bearish, with some companies panicking and selling at low prices, causing the continued decline in the price of silicon wafers. The price of silicon wafers continued to decline this week at a larger rate, mainly due to weakening demand and a reversal in supply-demand dynamics. Specifically, as the first time point of "430 and 531" installation frenzy approaches, demand for end components has reached its peak, downstream stocking is nearing completion, and subsequent demand will gradually decline. At the same time, prices for battery ends, mainly 210RN, have started to decline significantly this week, directly affecting the procurement of silicon wafers for battery ends. Under the dual pressure of expectations for weakening terminal demand and declining battery prices, silicon wafer manufacturers have strong intentions to reduce their inventories, leading to a noticeable increase in price concessions. According to statistics, the overall industry operating rate this week is between 55% and 58%, with the operating rates of two first-tier enterprises at 59% and 58%, integrated enterprises at 60%-80%, and other enterprises between 58% and 80%, with no significant changes in market supply. This week, downstream battery and component prices continue to decline, with mainstream battery prices dropping below 0.30 yuan/W to 0.27-0.29 yuan/W, a decrease of 0.02-0.03 yuan/W compared to the previous week. The mainstream price for distributed components is 0.71-0.72 yuan/W, a decrease of 0.01-0.02 yuan/W compared to the previous week. Currently, the delivery of high-priced component orders is nearing completion, and the silicon wafer market is pessimistic about the new round of procurement and sales prices. Silicon wafer prices still face certain downward pressure. However, with industry self-regulation and voluntary adjustments in production pace by various companies, the supply of silicon wafers is expected to decrease in the future. Additionally, it is understood that the inventory of silicon wafers at the battery end is limited to about one week. Therefore, in the situation of reduced supply and low inventory, the downward space for silicon wafer prices will not be too large.