Alliance Consultation: Profit margin of battery cells increased in March inventory issues continue to drag down silicon wafer performance.

On March 7th, according to TrendForce, silicon wafer prices have diverged this week. At the current stage, the level of inventory is a key factor in determining the trend of silicon wafer prices. The inventory level is expected to increase significantly this month, putting pressure on silicon wafer prices. Battery wafer prices have remained stable this week. Downstream component production has quickly resumed, releasing a large amount of purchasing demand, particularly for high-efficiency N-type battery wafers. Overseas projects have also driven demand for P-type wafers. The battery wafer sector, with low inventory levels, will see profits recover first. Silicon Material: This week, silicon material prices have remained stable with mainstream transaction prices of 60 yuan/KG for monocrystalline recycled materials and 58 yuan/KG for monocrystalline dense materials. The quoted price for N-type materials is 71 yuan/KG. From the trading perspective, the number of manufacturers signing contracts has been increasing, but different varieties have shown differentiation in prices and quantities. The market for N-type materials has narrowed down due to cautious purchasing by downstream buyers. Meanwhile, the market for P-type materials has seen strong frontline prices but discounts and clearance sales are common among second-tier manufacturers. Silicon Wafers: This week, silicon wafer prices have diverged. The mainstream transaction price for P-type M10 wafers is 2.05 yuan/piece, P-type G12 wafers at 2.80 yuan/piece, N-type M10 wafers at 1.95 yuan/piece, and N-type G12 wafers at 3.00 yuan/piece. From the supply side, the high operation rate at the pulling end of the silicon wafer production line is expected to result in a production output of 66-68GW. From the monthly supply and demand perspective, inventory levels are expected to continue to rise, potentially reaching a critical point by the end of the month. Battery Wafers: Battery wafer prices have remained stable this week, with the mainstream transaction price of M10 battery wafers at 0.390 yuan/W and G12 battery wafers at 0.380 yuan/W. Efficient N-type battery wafers have seen increased demand due to the rapid recovery of downstream component production. Overseas projects have also driven demand for P-type wafers. The low inventory levels in the battery wafer sector will lead to profits recovering first. Components: This week, component prices have remained stable. The mainstream transaction price for 182 monofacial PERC modules is 0.93 yuan/W, 210 monofacial PERC modules at 0.95 yuan/W, 182 bifacial PERC modules at 0.94 yuan/W, and 210 bifacial PERC modules at 0.97 yuan/W. After experiencing a period of contraction, component production is expected to rise to 48-50GW in March. The increase in production is mainly driven by top-tier manufacturers, with support from overseas and terminal projects. The demand side is strong, particularly for Q1-Q2 distributed projects, indicating marginal improvement in demand.