Institution: The downward trend in the prices of battery cells upstream has led to a weakening of the support for component costs.

According to Jibang Consultation, the photovoltaic component sector is facing pressure due to the collapse of industry chain costs and weak end demand. Currently, end demand continues to fall short of expectations, with market procurement mainly focused on low-priced sources. Industry transactions mainly rely on just-in-time inventory replenishment and previous bid-winning order deliveries for support. With upstream battery prices showing a downward trend, component cost support is weakening. Market sentiment is cautious, with some leading companies proactively lowering prices significantly to around 0.67-0.70 yuan/W, while second and third-tier companies are quoting prices at around 0.65-0.67 yuan/W. Some companies with excess inefficient inventory are selling at low prices to recover cash flow. The industry is currently in a downward price trend, with downstream purchasing sentiment cautious, leading to a slowdown in inventory turnover and overall market trading volume. Under the continued weakening of upstream costs and weak end demand, it is expected that component prices will continue to be under pressure in the future.