The Price Impact Of Raw Materials On Solar Backsheets

• Raw material prices, particularly PVDF resin have significant impact on backsheet prices in the solar backsheet industry
• The market prices for backsheets in china have increased over the years. White backsheets reached as high as 14.5 RMB/m2, whereas transparent backsheet prices are higher at 30 RMB/m2
• There are mixed opinions regarding future market trends. While some expect a return to PVDF backsheets others prefer to continue using CPC due to cost considerations.

In recent previous articles on solar backsheets we discussed about high price of PVDF  and its impact on backsheets (see High Price Of PVDF Is The Hot Topic). Backsheet prices have been mainly affected by fluctuations in raw material prices, as they are by supply and demand. As we have emphasized several times, the increase in PVDF resin prices was one of the most significant developments in the backsheet segment last year, which has had a direct impact on backsheets based on the material. According to Endurans'  Business Director Vivek Chaturvedi, the market prices for backsheet in China, generally speaking, went up from a low 9.5 RMB/m2 level about 2.5 years ago to as high as 14.5 RMB/m2 for the white backsheet in summer 2022. For black & black and white & black, the prices were high at 20 to 21 RMB/m2, whereas the prices for transparent backsheet were even higher at 30 RMB/m2.

In fact, the prices for most of the backsheets were high in the year 2021 due to the high raw material prices in general as can be seen from the below graph. The CPC price went up from 9.5 RMB/m2 to a peak of 12.5 RMB/m2 before going back to its 2020 level. The prices of Tedlar based backsheets weren't affected. The prices of PET based backsheets reduced from their 2021 level of 11 RMB/m2 to 9 RMB/m2. Price-wise, the CPC and PET backsheets are at the same level. However, PVDF status end of 2022, based backsheet prices have not come down completely, with the difference standing at around 2 RMB/m2.

On the other hand, Chaturvedi believes the current, depressed prices for PVDF represent somewhat distressed sales prices and are not sustainable. "We'll see another correction on the right side after the Chinese New Year," he adds. However, Jiajing Wei from the marketing department Fumotech is very optimistic that the prices for PVDF would come back. The question now is if and when prices do come down, will the market go back to KPC or will it continue using CPC? The opinions are mixed on the subject. A few companies we spoke to expect the market to go back to PVDF backsheets. Jolywood, a strong proponent of CPC, does not see the market going back to PVDF. "It is difficult to achieve less than the 12 RMB/m2 price level with backsheets based on fluoropolymers," said  Michael Chen overseas sales director from Jolywood. Surprisingly, the strong proponent of PVDF backsheets also supports the idea; international marketing director Eric Yang from Cybrid says that the gap between the CPC and KPC structure would remain at around 2 RMB/m2 even when PVDF prices come down. The other reason he explains is, the market has successfully shifted to CPC, and if module manufacturers do return to PVDF, they might have to undergo certification for modules based on M10 and G12 wafer formats. That would not only be an expensive affair, but also requires more time. "Some of our module makers are willing to go back to PVDF, if and only if their customers are insisting; if not, they prefer to continue with CPC," said Yang (see Coatings And Non-Fluoro Are Gaining Traction)

For more details on solar backsheets, download the TaiyangNews Solar Backsheets & Encapsulants Market Survey 2022/23, which is accessible for free here .