Photovoltaic solar energy stocks are collectively under pressure, with SFCE down 6.9%, Xinyi Glass down 5.86%, IRICO Newenergy down 3.79%, GCL Tech down 2.86%, Flat Glass down 2.34%, and GCL Newenergy down 2.27%.
Bocom Intl stated that the continuous growth of supply has led to an exacerbation of oversupply. Since the end of March, the price of polycrystalline silicon has dropped sharply. According to Infolink, the price of dense material/granular silicon per ton has fallen from 68/61 thousand yuan to the current 40/37 thousand yuan (excluding tax, only 35/33 thousand yuan), falling below the cash cost of all companies except GCL Tech. However, with the improvement of quality, the discount of granular silicon has significantly narrowed from 7,000 yuan to 3,000 yuan. Under the pressure of losses and inventory, the national production in May has decreased by 4% on a month-on-month basis, and the Silicon Industry Branch expects a sharp decline of 20% in June, which may begin to reduce inventory. The bank predicts that the current severe industry loss situation is difficult to sustain, and the price of polycrystalline silicon has bottomed out and will rebound in the third quarter.