Two major silicon wafer leading companies announced price adjustments on the same day! Both sounding the horn of price increases together.

On August 27, TCL Zhonghuan Renewable Energy Technology (002129.SZ) announced an increase in the price of silicon wafers. After the adjustment, G10N is priced at 1.15 yuan per piece, G12RN at 1.3 yuan per piece, and G12N at 1.5 yuan per piece. Earlier, LONGi Green Energy Technology (601012.SH) also mentioned that their silicon wafers will increase in price, with N-G10L priced at 1.15 yuan per piece, N-G12R at 1.3 yuan per piece, and the new average price increasing by 5 fen per piece. LONGi Green Energy Technology stated that the recent adjustments in silicon wafer prices were necessary as the previous prices had fallen below cash costs. In order to promote a healthy market and consider supply and demand, the company decided to moderately increase the prices. Regarding whether the price increase will affect sales volume, LONGi Green Energy Technology believes that the impact will be minimal. Silicon wafer prices have been falling below costs since the second quarter of this year, and even with the increase, companies may still face significant pressure as the industry chain prices recover gradually. Since the fourth quarter of last year, due to temporary supply-demand imbalances, prices in the silicon wafer industry have been consistently dropping. According to the Silicon Industry Association's statistics last week, silicon wafer prices are still declining. Specifically, the average transaction price for N-type G10L monocrystalline silicon wafers has dropped to 1.08 yuan per piece, a 6.5% decrease compared to the previous period; the average transaction price for N-type G12R monocrystalline silicon wafers remains at 1.25 yuan per piece; and the average transaction price for N-type G12 monocrystalline silicon wafers has dropped to 1.5 yuan per piece, a 6.25% decrease compared to the previous period. The Silicon Industry Association analysis indicates that the price cuts by leading companies are accelerating inventory clearance, directly leading to significant declines in prices for large-size silicon wafers. Although prices in the silicon wafer and battery sectors are decreasing, the reduction in production by leading companies is seen as a positive factor for stabilizing the various segments of the industry chain in the medium to long term. The reduction in loads by top-tier companies is building confidence in the industry, and after a short-term period of selling pressure, the market is expected to be on a continued upswing in terms of supply and demand, with prices likely to gradually stabilize.