(1) The China Photovoltaic Industry Association held a symposium on preventing vicious competition in the industry, with the aim of resolving excess capacity earlier;

(2) Such meetings have been held many times, but they have been effective. Module prices are still falling, and the industry is looking forward to more concrete production reduction plans.

Finance Associated Press, October 14 (Reporter Liu Mengran) The price of the photovoltaic industry chain continues to be sluggish, and the production capacity is ready to be cleared early. Today, the China Photovoltaic Industry Association held a symposium on preventing vicious competition in the industry, with the aim of resolving excess capacity earlier.

Since the meeting was held in a closed format, the details of the discussions were not disclosed. Some business people told the Financial Associated Press reporter that they expect relevant departments to introduce specific measures to improve the current balance of supply and demand in the industrial chain. However, the practical difficulty lies in the fact that considering the differences in customer composition and cost structure, it is difficult for a single price constraint mechanism to be effective. In the absence of a production reduction plan, the situation of oversupply capacity is difficult to change in the short term.

According to the WeChat account of the China Photovoltaic Industry Association, entrepreneurs and representatives fully communicated and reached a consensus on "strengthening industry self-discipline, preventing 'involution' vicious competition, strengthening the market survival of the fittest mechanism, and smoothing the exit channels of backward and inefficient production capacity" and the healthy and sustainable development of the industry.

It is reported that a total of 16 leading photovoltaic companies participated in the meeting, mainly covering all aspects of polysilicon, silicon wafers, cells and modules, including Tongwei Co., Ltd. (600438. SH), LONGi Green Energy (601012. SH), JA Solar (002459. SZ), JinkoSolar (688223. SH), Trina Solar (688599. SH), Canadian Solar (688472. SH) and so on. There are three specific agendas for the meeting, including the discussion of industry self-discipline conventions on "anti-involution competition, anti-below-cost dumping" and other contents; orderly resolution of supply and demand imbalance, clearance of excess capacity and other related measures; Other suggestions for guiding the healthy and orderly development of the industry.

The tug-of-war over the clearing of production capacity continues to this day, but even at the trough of prices, the output of each link is still hitting a new high. According to data from the China Photovoltaic Industry Association, the output of polysilicon in the first half of 2024 will be about 1.06 million tons, a year-on-year increase of about 60.6%; the output of silicon wafers was about 402GW, a year-on-year increase of about 58.9%; cell output was about 310GW, a year-on-year increase of about 37.8%; Module production was about 271GW, a year-on-year increase of about 32.2%.

In terms of prices, the China Photovoltaic Industry Association (CPIA) and relevant departments have organized several forums to call for "anti-involution" and rational competition in the industry, but module prices have not stopped falling. According to InfoLink, after the National Day, market demand is still sluggish, and the overall price of modules has continued to decline, with the average module price starting to fall to RMB 0.7/W.

At LONGi Green Energy's 2024 semi-annual results briefing, Chairman Zhong Baoshen was asked when the price of the photovoltaic industry will have an inflection point, and he believes that "at present, all links are at a low level, and the price direction should be upward in the future, but it is difficult to say when, because it depends on the overall supply and demand relationship, and also depends on the competitive relationship of enterprises." ”

However, the upstream of the photovoltaic industry chain has stabilized under the constraints of cost factors. In the latest record of investor relations activities released by Tongwei Co., Ltd., the company's management believes that in the short term, polysilicon prices have ushered in a slight rebound after stabilizing for many weeks, which confirms that the upstream and downstream of the industrial chain have reached a basic consensus on the price bottom, but before the supply and demand situation does not improve significantly, polysilicon prices are likely to maintain stable operation in the short term.

In addition, with the advent of the dry season in the fourth quarter, the cost of electricity will increase, which will lead to higher production costs of industrial silicon and polysilicon, and the supply and demand pattern will improve, and prices are expected to continue to rise slightly.

Although there is still no obvious clear signal, the delay of new projects has alleviated the surplus situation to a certain extent. On September 30, Trina Solar announced that it would postpone the date of the second phase of the company's fundraising project "35GW of Straight-pull Monocrystalline Project with an annual output of 35GW" to reach the scheduled usable state, from the original plan of December this year to June 2026. Collection

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