Chinese PV Industry Brief: Wafer Prices Fall on Weak Demand

Why It Matters

Falling PV prices squeeze Chinese manufacturers' margins, while overseas contracts provide growth avenues and diversify revenue streams.

Key Takeaways

• Polysilicon prices fell ~6.4% to CNY 45,200/ton.
• Wafer prices dropped to CNY 1.03‑1.33 per piece.
• Weak downstream demand drives Chinese PV price compression.
• PowerChina lands 2.1 GW solar‑storage EPC, CNY 13.96 bn.
• JinkoSolar targets 2 GW Australian module supply via Blue Sun.

Pulse Analysis

The latest CNMIA data shows Chinese polysilicon and wafer prices sliding for a second consecutive week, with n‑type re‑feed and dense polysilicon down 6.4% to CNY 45,200 per tonne. Wafer grades such as G10L, G12R and G12 fell to between CNY 1.03 and CNY 1.33 each, underscoring the impact of lingering weak downstream demand and a surplus of raw material. Analysts attribute the downward pressure to lower operating rates at PV manufacturers and a slowdown in utility‑scale project launches, which together erode pricing power across the domestic supply chain.

Even as domestic pricing tightens, Chinese EPC firms are expanding abroad. PowerChina’s newly signed 2.1 GW solar‑plus‑storage EPC contract in Abu Dhabi, valued at CNY 13.96 billion, illustrates the growing appetite for integrated renewable projects in the Middle East. The deal combines 2.1 GWp of photovoltaic capacity with 7.75 GWh of battery storage, reflecting a global shift toward hybrid assets that can balance intermittency. For Chinese contractors, such contracts provide a hedge against margin compression at home while cementing their reputation in the fast‑evolving international market.

JinkoSolar’s memorandum of understanding with Australia’s Blue Sun Group to supply up to 2 GW of Tiger Neo 3 modules adds another layer of strategic diversification. The agreement builds on more than 1 GW already delivered and positions JinkoSolar to capture a larger share of Australia’s distributed solar boom, where rooftop and community installations are accelerating. By anchoring production to a high‑growth export market, JinkoSolar can offset domestic price volatility and reinforce its global supply chain resilience. Together, these moves signal a pivot toward overseas demand as Chinese PV pricing faces headwinds.