Home » The price of LONGi silicon wafers increased by 2.4%-5.1%. What happened to the industry chain?丨Jianzhi Research – Wall Street News

The price of LONGi silicon wafers increased by 2.4%-5.1%. What happened to the industry chain?丨Jianzhi Research – Wall Street News

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On January 16, LONGi updated the price of monocrystalline P-type silicon wafers, compared with the quotation on December 16. 158.75mm silicon wafer rose 0.12 yuan/piece, the latest price was 4.95 yuan/piece, an increase of 2.5%; 166mm silicon wafer rose 0.12 yuan/piece, the latest price was 5.15 yuan/piece, an increase of 2.4%; 182mm silicon wafer rose 0.3 yuan/piece, The latest price is 6.15 yuan / piece, an increase of 5.1%.Wall Street News & Wisdom Research Why did the price of silicon wafers stop falling and rise under the review, and what happened to the industry chain?

On November 30, 2021, LONGi adjusted the official quotation of monocrystalline silicon wafers, and the price of silicon wafers of various sizes decreased by 7.2% to 9.8%. This is the first time that LONGi’s official silicon wafer quotation has been lowered since May 2020. At that time, it was mainly because the inflection point of the price game in the industry chain had reached last year, and the high-priced silicon material had already discouraged the downstream. Go to stock.

However, after the price of silicon wafers has been reduced for more than a month, that is, after entering 2022, the inventory is almost cleared. With the recovery of downstream demand, it is inevitable that the price of silicon wafers will stop falling and rise. On January 16, 2022, LONGi’s official announcement that the price of silicon wafers will increase this time is not unexpected.The price of silicon wafers in the industry has risen since last week. The main reason is that from the supply side, a magnitude 6.9 earthquake occurred in Menyuan County, Beizhou, Qinghai, which has a certain impact on Yinchuan and Qinghai. A total reduction of 0.8-1GW of silicon wafer supply has caused a shortage of supply in the short term; the second is due to the strong downstream demand in the first quarter, which means that the demand for silicon wafers from downstream cells and modules has led to this round of silicon wafer prices. important reason. On the one hand, the strong demand is due to the fact that some projects at the terminal at the end of last year did not buy high-priced components, and the projects were postponed to this year; on the other hand, it was also to prepare for stocking during the Spring Festival. These factors have caused battery and module companies to expand their procurement efforts and increase inventories, and downstream demand for large-size silicon wafers has begun to increase. At present, the operating rate of first-tier silicon wafer companies has increased, about 60%-70%.

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In addition to the improvement in downstream demand, the increase in silicon material prices last week is also an important reason for catalyzing the rise in silicon wafer prices.The price of silicon material peaked in November last year, and then began to cut prices for more than a month. At the end of last year, the middle and downstream enterprises in the industry chain cut prices to remove inventory.At present, the inventory in all aspects of the industry is not high, and the demand for stocking before the Spring Festival is strong. Like silicon wafers, it is difficult for the price of silicon materials to drop in the short term. On January 7th, we wrote an article on “Silicon material prices have narrowed down, talk about the industry chain situation and this year’s outlook | Insight Research”The stabilization and recovery of the price of silicon material last week is basically the same as the reason for the narrowing of the decline as we said before. The main reason is that the strong downstream demand has led to an increase in the operating rate of silicon wafer companies, which in turn led to an increase in the price of silicon wafers, which in turn increased the purchase of silicon materials. Demand, all support the price of silicon material.That is to say, the current expansion and release of silicon materials is not as strong as downstream demand, and the periodic imbalance between supply and demand is an important reason for the stabilization and recovery of silicon materials prices.

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Overall, Wall Street’s knowledge and wisdom researchIt is believed that in the short term, if the terminal demand continues to improve and the production capacity of silicon materials is not as fast as the demand, the price of silicon materials and silicon wafers will continue to rise slightly. However, after the second quarter, with the gradual implementation of the supply of silicon materials and the absence of the demand for stockpiling during the Spring Festival, the price of silicon materials will likely go down.That is to say, the price of silicon material will trend downward during the year, but at least in the first quarter, we do not think it will fall sharply; the same is true for silicon wafers. First, as long as demand improves in the first quarter, the price of silicon wafers will be supported; It is expected that the short-term supply will be in short supply, which will also cause the demand for silicon wafer companies to follow up. For at least the first quarter, silicon wafer and silicon material prices are expected to continue the situation of slight rebound and stabilization.

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Market risk, the investment need to be cautious. This article does not constitute personal investment advice and does not take into account the particular investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, views or conclusions contained herein are appropriate to their particular circumstances. Invest accordingly at your own risk.

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