Global Silicon Wafer Prices Extend Slide As Oversupply Deepens

Global Silicon Wafer Prices Extend Slide as Oversupply Deepens

The global solar silicon wafer market continues its downward trajectory, with N-type M10 wafer prices plunging to $0.122 per piece this week – a 2.40% weekly decline and 22.78% collapse since early April peaks. According to the latest OPIS (a Dow Jones subsidiary) report, this marks the eighth consecutive week of declines for this segment, driven by persistently weak downstream demand.

Price Divergence Emerges
While N-type M10 wafers face sustained pressure, other categories show relative stability:

P-type M10 wafers held at $0.133/piece FOB China

N-type G12 wafers maintained 0.166/piece∗∗DomesticChinesetradingfor182x183.75mmN−typewafershasnowbreachedthepsychologicalbarrierof∗∗¥0.95(0.166/piece∗∗DomesticChinesetradingfor182x183.75mmN−typewafershasnowbreachedthepsychologicalbarrierof∗∗¥0.95(0.13) per wafer, reflecting intense competition.

Industry Survival Tactics
Facing mounting losses, Tier 2 and 3 manufacturers are adopting aggressive cost-cutting measures:

Increasing use of low-grade silicon materials to slash production costs

Reducing cash production expenses for N-type M10 wafers to ¥0.90 per wafer
The financial strain is palpable, with multiple manufacturers withdrawing reserved booths ahead of Shanghai's SNEC exhibition – a move industry insiders interpret as a distress signal.

Inventory Correction Underway
Market dynamics show tentative rebalancing:

Silicon wafer inventories have retreated from mid-May's peak of over 20GW

Prices have fallen to levels attracting downstream buyers, spurring procurement
May production data reveals a narrowing gap:

Solar cell output: ~56GW

Wafer production: ~50GW
"Historically, upstream production runs 5% higher than downstream to account for processing losses," noted an industry source. "The current reversal – wafer output lagging cells – confirms chronic oversupply."

Capacity Utilization Divide
Operational rates highlight market fragmentation:

Top integrated manufacturers: ~55% capacity utilization

Leading pure-play wafer specialists: up to 80% utilization
As wafer prices hit record lows, some vertically integrated players are reducing in-house production, instead:

Sourcing cheaper wafers from spot markets

Outsourcing slicing operations to third parties (current cost: ~¥0.04/wafer)

Structural Challenges Persist
Despite recent inventory draws, fundamental imbalances remain. With wafer prices now below production costs for most players and demand recovery uncertain, industry consolidation appears inevitable. Market observers warn the sector must navigate this "Darwinian phase" before sustainable pricing can return.