This year, the photovoltaic glass market will continue the high level of photovoltaic glass prices in 2020.
It is reported that by the end of November 2020, the mainstream 3.2 mm photovoltaic glass price in the photovoltaic demand market has risen to about 45 yuan/square meter.
Benefiting from the phased short supply of photovoltaic glass since the second half of 2020, the performance of listed photovoltaic glass companies is booming.
On January 29, Luoyang Glass Co., Ltd. (hereinafter referred to as “Luoyang Glass”) and Henan Ancai Hi-Tech Co., Ltd. (hereinafter referred to as “Ancai Hi-Tech”) announced the announcement of 2020 performance increase.
Among them, Luoyang Glass is expected to achieve a net profit of 300 million to 340 million yuan in 2020, an increase of 456% to 530% year-on-year, and non-non-profit net profit will increase 23-26 times year-on-year; Ancai Hi-Tech expects a net profit of about 120 million yuan in 2020 Yuan, a year-on-year increase of about 503%.
Both companies stated that the strong growth in market demand for photovoltaic glass in 2020 will drive the sales and selling prices of photovoltaic glass products to both increase, which will increase the profitability of the company’s photovoltaic glass business.
The market is booming and supply exceeds demand. Since the second half of 2020, the price of photovoltaic glass has risen sharply. Energy Trend statistics from the New Energy Research Center show that the price of photovoltaic glass has increased by more than 80% since July 2020. By the end of November 2020, the price of 3.2 mm photovoltaic glass, which is the mainstream in the photovoltaic demand market, has risen to about 45 yuan per square meter. The single price is as high as 50 yuan/square meter.
Although the high transaction price of photovoltaic glass has fallen from December 2020 to now, and the average price has remained stable, its price has not yet dropped significantly. Energy Trend predicts that the price of photovoltaic glass will remain high in the first quarter of this year.
From the perspective of the current photovoltaic glass market, due to the previous photovoltaic glass capacity replacement policy, which suppressed the expansion of glass production, the double-glass penetration rate and large-size modules above 166 mm have driven demand. In the first quarter of 2021, the photovoltaic glass market will continue the price of photovoltaic glass in 2020 At the same time, the overall supply is relatively tight.
Affected by changes in supply and demand, since 2020, news about the expansion of listed photovoltaic glass companies has continued. In this context, Energy Trend said that from the perspective of the production capacity release expectations of various companies, new glass furnaces will be put into production at the end of the year and the release of production capacity will accelerate.
In addition, Xinyi Solar’s Anhui base will ignite two production lines in the first quarter of 2021. Almaden plans to ignite a 650-ton/day production line in 2021. Other companies have a higher chance of ignition in the second half of the year.
There are still a number of preparatory projects, Chenzhou Kibin No. 1 Kiln No. 6 Line 1,200 tons/day of the new production line in late September 2020. Shaanxi Rainbow Electronic Glass Co., Ltd. has one kiln and four lines 800 tons/day production line has entered the preparatory stage, and the specific time for the production process needs to be followed up.
Energy Trend pointed out that from the perspective of market conditions at the beginning of this year, glass prices have ended the upward trend. With the end of the rush to install, the market demand slows down, and glass prices are expected to loosen in the off-season. However, the problem of relative shortage has not been completely resolved, providing strong support for the price of photovoltaic glass in the second half of 2021. It is estimated that in 2021, the planned production of photovoltaic glass will total 10,300 tons/day, and the production will be relatively concentrated in the second half of the year. Due to construction progress, various approvals and market operation, the ignition time may be adjusted.
With the continuous release of the production capacity of new photovoltaic glass manufacturers in the second half of 2021, it is expected that the supply and demand situation of photovoltaic glass may be alleviated by the first half of 2022.