Photovoltaic industry chain prices stabilized

PV Insights: Light Trading During the Christmas Holidays This week, trading activity in Europe and the U.S. remained subdued during the Christmas holiday period, with overall prices in the photovoltaic industry chain remaining stable. Monocrystalline wafers and solar cells continued to see strong demand, while manufacturers have shifted from cutting prices to reducing production capacity. Despite ongoing challenges with polysilicon supply, silicon wafer producers are no longer lowering their prices, and polysilicon prices have stabilized at current levels. Solarzoom reports that inventory levels remain low, and prices are gradually stabilizing. With current market conditions, many manufacturers have realized that blindly lowering prices does not lead to significant orders, as demand remains limited. As a result, recent transactions have been small in scale. The wafer market showed little movement this week, with inquiries remaining largely unchanged compared to last week. Although downstream demand is still weak, which may prevent a price rebound, 80% of wafer companies are now cutting production or even shutting down temporarily. This has helped reduce market inventory, supporting price stability in the short term. While wafer prices may remain weak, they are expected to stay relatively stable. In the solar cell segment, demand has been steady, but the overall market volume remains light. With the announcement of the second batch of Golden Sun projects, some companies are beginning preparations. However, there is still no strong driver for a significant price increase. Some domestic cell manufacturers are also managing production lines carefully to avoid overstocking. Market activity this week showed no follow-through, and companies are clearly adopting a neutral pricing stance. On the module side, domestic module prices remained stable this week. Module prices have not seen major changes, and with half of December already gone, the market has been sluggish. Before policy clarity emerges, both end-users and domestic module manufacturers remain cautious, keeping market turnover depressed. However, compared to previous periods, prices have dropped slightly, and component inventory levels are significantly lower, which has weakened the downward momentum. In terms of ports, current inventory levels are low, and domestic stock is not high. Most companies are hesitant to take on more inventory, preferring to wait and see. Some firms, however, are increasing their stock of battery materials, ready to respond quickly if demand picks up. In the short term, module prices are likely to remain at current levels. Policy News: Focus on New Energy Distributed Generation Plans Due to trade tensions and weak overseas markets, the government is currently exploring ways to boost domestic demand. The introduction of a new energy distributed generation plan could be a key driver for growth, and it's currently under discussion. Investors should keep an eye on future developments. Risk Factors: Continued Price Declines and Escalating Trade Tensions There are concerns that PV product prices may fall further, especially if trade tensions escalate. Investment Advice: Maintain "Neutral" Rating for the Solar Sector The solar sector has seen a recent rebound, and from a fundamental perspective, the industry is starting to reach a bottom. While prices may be stabilizing, the traditional off-season is approaching, and stronger demand will be needed for a meaningful price recovery. We recommend maintaining a "neutral" rating for the industry and monitoring further price movements closely.