Huatai Securities: Urgency of Anti-Inner Rolling of Photovoltaic Glass is Strong, Leading Companies Expected to Lead Production Cuts

Huatai Securities believes that the urgency of anti-insulation in photovoltaic glass is strong, and leading companies are expected to take the lead in reducing production. Recently, the Central Financial and Economic Commission's sixth meeting proposed "governing low-price disorderly competition of enterprises in accordance with laws and regulations, guiding enterprises to improve product quality, and promoting the orderly withdrawal of backward production capacity." The cement, glass, and other sub-sectors actively promote "anti-insulation." Currently, photovoltaic glass prices may face industry-wide losses, and the demand shrinkage and high inventory in the second half of 2025 will further increase price pressure, hence the strong urgency of "anti-insulation". By sorting and calculating the possible increments and decrements in the supply side of photovoltaic glass, compared to the bottom of the cycle at the end of 2018, achieving a rebalancing may require more time, stemming from potential increments or suppressing the upward movement of photovoltaic glass prices, while the limit to reduce production is there, the industry can only increase the intensity of cold repairs and production stoppages.