TCL Central and LONGi Green Energy to Adjust Silicon Wafer Prices in the US
TapTechNews August 27th news, TCL Central announced that it will increase the price of silicon wafers externally. After the adjustment, G10N is $1.65 per piece, G12RN is $1.9 per piece, and G12N is $2.2 per piece.
According to TCL Central's introduction, the purpose of this move is to appropriately reduce its own silicon wafer capacity utilization rate, reduce inventory, improve the industry's supply-demand relationship, increase the price, stabilize market expectations, maintain the sustainable development of the industry, and improve the company's operating performance.
Regarding the increase in the price of silicon wafers, TCL Central told Interface News: For this price adjustment, the company actively leads the photovoltaic industry to get out of the predicament of low-price competition and helps create a more healthy and sound industrial environment.
In addition, LONGi Green Energy also confirmed this morning that it will increase the price of silicon wafers, among which the quotation of N-G10L is $1.65 per piece and the quotation of N-G12R is $1.9 per piece, with an average increase of 7.5 cents per piece. In this regard, LONGi Green Energy said that its aim is to promote the industry to get out of the quagmire of low-price competition through price adjustment and return to a healthy competitive environment.
TapTechNews noticed that TCL Central just released the latest financial report on the evening of August 23rd. In the first half of this year, the revenue was 16.213 billion yuan, a year-on-year decrease of 53.54%; the loss was 3.064 billion yuan, turning from profit to loss.
TCL Central attributes the loss in the first half of the year to three factors. First, the imbalance between supply and demand in the industry has intensified, and its new energy material business segment has entered an irrational price competition state. Although it still maintains the industry-leading single-watt cost, the cost reduction is not as fast as the decline in market prices, and the total loss has increased.
From the perspective of products, in the first half of the year, the revenue of TCL Central's silicon wafers was 10.432 billion yuan, with a year-on-year decrease of more than 60%, accounting for 64.34% of the total revenue. The gross profit margin of this part has dropped significantly by 34.13 percentage points, and currently it is only -9.25%.
The financial report shows that in the first half of the year, TCL Central's photovoltaic single crystal capacity has been increased to 190 GW, and the shipment of photovoltaic material products was about 62 GW, an increase of 18.3% year-on-year. The silicon wafer comprehensive market share is 23.5%, ranking first in the industry. The external sales market share of its large-size (210 series) silicon wafers is 61%, which is an increase compared to 2023; the N-type external sales market share is 42%, an increase of 6 percentage points compared to last year.
Data from the Silicon Industry Branch of the China Nonferrous Metals Industry Association shows that last week, leading enterprises reduced prices to clear inventory, resulting in a relatively large decline in the price of large-size silicon wafers. It is said that the current operating rate of TCL Central is about 75%. Previously, the production of the M10L model was relatively more, and the terminal demand is limited. Reducing the operating rate is a relatively normal behavior, and it is expected to be around 70%.