Luoyang to increase subsidiaries' capital by RMB 1.4 billion: Float glass manufacturer Luoyang Glass released an announcement regarding the use of raised funds to increase the capital of its wholly-owned subsidiaries. The company had recently raised RMB 2 billion ($0.31 billion) through non-public issuance of 97,134,500 A shares, at the cost of RMB 20.59/share (RMB $3.18/share) (see China PV News Snippets: CECEP, Luoyang, Jinko, JA). About RMB 600 million ($92.79 million) will be used to increase the capital of its subsidiary Hefei New Energy, and RMB 800 million ($123.72 million) for Tongcheng New Energy. After the capital increase, the registered capital of Hefei New Energy will increase from RMB 268 million ($41.45 million) to RMB 868 million ($134.24 million), and Tongcheng's will increase from RMB 133 million ($$20.57 million) to RMB 933 million ($144.29 million).
Price negotiations for polysilicon, wafer, cell & modules continue: As per a PV InfoLink report, the prices of polysilicon, wafer, cell, and modules continue to be under negotiation, amid skyrocketing production costs, and increase in wafer and BOM prices.
Polysilicon: With no inventories left to sell, polysilicon will not see evident price fluctuations until the end of the month. Moreover, the capacities of most of the polysilicon manufacturers have been booked previously, and the polysilicon prices are likely to touch RMB 215/kg ($33.25/kg).
Wafer: Leading mono-silicon wafer manufacturer LONGi had again raised the wafer prices only after few weeks (see China PV News Snippets: LONGi, Zhonghuan Solar). G1, M6, and M10 wafers with a thickness of 170μm respectively now touch RMB 5.24/piece ($0.717/piece), RMB 5.34/piece ($0.731/piece), and RMB 6.41/piece ($0.877/piece). However, as cell and module price hikes have reached their limit, the market is yet to accept LONGi's new pricings, and negotiations are still on, said PVIL, adding that the market is concerned about the impact the wafer and BOM price hikes will have on end-user module demand.
Cell: Meanwhile, in response to wafer price hikes, cell manufacturers are negotiating for higher price quotes preferably in the range of RMB 0.02-0.04/W ($0.0031-$0.0062). As of now, each cell maker seems to have dispersed price quotes, where M6 cells is at RMB 1.07-1.09/W ($0.17/W), and M10 cells at RMB 1.09-1.1/W ($1.07/W). The cell sector is expected to see limited rooms for further price hikes and may reduce production volume in October, according to PVIL.
Module: Amid rising production costs, the module sector saw profits suffer. Consistent increase in polysilicon and wafer prices, coupled with EVA price hikes which were more than 20%, have intensified the cost pressures on modules, and module makers may see lower-than-expected utilization rates in October, said PVIL.
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