Starting December 17, leading solar module manufacturers have begun raising prices. Multiple distributors confirmed that Longi Green Energy Technology Co.,Ltd. (601012.SH) announced price hikes due to rising silver costs, with N-type modules increasing by RMB 0.04/W and back-contact (BC) modules by RMB 0.02/W. Competitors including Jinko Solar Co.,Ltd. (688223.SH) and Ja Solar Technology Co.,Ltd. (002459.SZ) followed suit, raising prices by RMB 0.03–0.05/W. Post-adjustment, module prices now average RMB 0.75/W.
Distributors noted that December typically sees year-end sales pushes, with manufacturers initially planning January 2025 price hikes. However, unexpected silver price surges forced earlier adjustments. Requests for comment from Longi and other firms went unanswered.
Wang Huilin, a silver-lead analyst at Shanghai Metals Market, explained that silver price volatility primarily impacts solar cell costs, which had already risen earlier. Silver’s high conductivity makes it critical for current transmission in crystalline silicon photovoltaic cells. Global silver prices have surged from ~RMB 220/oz early this year to over RMB 450/oz—outpacing gold—with Q4 seeing the sharpest climb. Guojin Securities data shows silver paste now accounts for 17% of module production costs, surpassing silicon (14%) and solar glass (13%).
To offset silver-driven cost pressures, manufacturers previously squeezed processing fees or adjusted silver premiums, passing burdens to intermediate suppliers like silver nitrate, powder, and paste producers. Some cell/module firms also preemptively hedged via commodity departments, though excessive price rises now risk making long positions untenable.
Wang noted that while manufacturers optimized silver content in pastes, reductions remain limited to ensure quality. Heterojunction (HJT) cell copper-silver coating R&D continues but won’t replace mainstream tech soon. Trina Solar Co.,Ltd. (688599.SH) R&D leads confirmed efforts to cut silver use by ~15mg/cell this year, with base-metal alternatives (e.g., copper pastes) under development but requiring validation.
Wang advised firms to strengthen supply chain management against short-term volatility and explore module recycling for cheaper raw materials like crude silver/silicon, building circular supply chains. At an industry conference (Dec 17–18), Guojin Securities analyst Yao Yao projected 2025 module prices reaching RMB 0.88–0.99/W if anti-dumping measures sustain "cost-covering" pricing. "Profitability next year would require drastic capacity cuts," Yao said. "Lower utilization raises fixed costs, compounding with commodity (silver/silicon) inflation to push module prices higher."
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