Between March 25, 2020 and May 25, 2020, LONGi Silicon has slashed its mono wafer prices five times, reported local media. This time around, the reduction has been RMB 0.15 per piece for its P-type M6 175 μm thick (166/223mm) and P type 158.75/223 mm 175 μm thick wafers. (Source: Yichun (YC) Wang, LONGi Silicon/LinkedIn)
- LONGi Silicon has brought down its high efficiency mono wafer price for P-type M6 175μm thickness (166/223mm) by RMB 0.15 per piece
- Price reduction of RMB 0.15 per piece also announced for P type 158.75/223mm 175μm thickness wafer
- Earlier in May 2020, PV InfoLink said large inventories of Tier-I manufacturers was forcing them to bring down their prices to the levels offered by Tier 2 or Tier 3 producers as overseas demand dropped
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LONGi Silicon, part of the LONGi Group, has lowered its high efficiency mono wafer price by RMB 0.15 ($0.021) per piece. Its P-type M6 175 μm thick (166/223 mm) mono wafer is now priced RMB 2.62 ($0.328) per piece compared to RMB 2.77 ($0.347) per piece it stated on May 9, 2020.
LONGi Silicon’s Yichun (YC) Wang, Director of Application Engineering and Key Customer Service, said it was another price reduction in the month of May 2020 in a LinkedIn post. Soon after Labor Day holiday, the price was reduced by the company by RMB 0.15 per piece.
The price for P type 158.75/223 mm 175 μm thick wafers also came down by RMB 0.15 per piece from RMB 2.68 ($0.336) per piece on May 9, 2020 to RMB 2.53 ($0.317) per piece on May 25, 2020.
Local Chinese publication Photovoltaic Frontier reported this is the fifth time since March 25, 2020 that LONGi has slashed its prices.
While Wang did not state the reason behind the second reduction in the month of May for M6 wafer, market intelligence firm PV InfoLink pointed out earlier in May 2020 that a bigger price gap between gallium-doped and boron-doped wafers of Tier-2 manufacturers won in the price game compared to their Tier-I counterparts securing more orders as they have sold most of their stocks. This is forcing Tier-I players to bring down their prices with an aim to reduce their inventories. Another reason might be that LONGi simply wants to push its M6 wafer size into the market.
On May 13, 2020 PV InfoLink said the lowered price level is coming close to the cash costs of Tier-2 and Tier-3 companies so it doesn’t look like there is any scope for further lowering of prices. It further added, “Despite a pick-up in Chinese demand, the volume of installation was revised downward as the pandemic continues to rage overseas markets. As mono-Si wafer manufacturers are bringing new capacity online, the supply exceeds demand, and therefore prices are expected to slowly trend downward. This week, mono-Si wafer prices were reduced to RMB 2.45-2.67/piece for G1 and RMB 2.67-2.76/piece for M6, while that for overseas markets stood at USD 0.322-0.335/piece for G1 and USD 0.341-0.346/piece for M6.”
There is also an upcoming technology shift that should play in the hands of LONGi, which recently acquired patents on Ga-doped wafers. PV InfoLink reported on May 20, “Along with ever-decreasing mono-Si wafer prices, prices for boron-doped wafers were recently pressed down. Hit by low boron-doped wafer prices, most Tier-2 and 3 makers can no longer afford to produce such wafers. So, mono-Si wafer makers are increasingly shifting to the gallium-doped wafer, which will soon replace the boron-doped wafer as the mainstream mono-Si wafer in the market.”