Chairman of Longji Co., Ltd.: the short-term price rise of industrial chain does not affect the access to the Internet at parity

category:Finance
 Chairman of Longji Co., Ltd.: the short-term price rise of industrial chain does not affect the access to the Internet at parity


He further explained the reason why there is no need to worry too much about the price increase: when the price of auxiliary materials such as polysilicon and glass is added to the module end, the overall price increase will increase by 15 cents compared with the previous lowest price of the module, which accounts for less than 5% of the total system cost.

Zhong Baoshen also said that with the progress of technology and the passage of time, these rising materials will become cheaper in the future, and the whole solar technology will be further developed. In the next year or two, the cost of solar power generation will continue to decline, but not rise.

An industry person also told the first finance and economics reporter that the price rise of the industrial chain is a short-term result, which actually only advanced the price rise caused by the installation boom in the fourth quarter. Compared with the recent price rise, the low price of silicon materials in the first half of this year is abnormal, which is the result of the epidemic situation. The previous low price is the result that manufacturers cant bear and have to do it. In fact, there is not enough gross profit space at all. Now, the price of products after rising is the normal price that can continue to make profits.

According to the report released by gaixi Consulting Co., Ltd., the quotation of some material factories continued to rise last week. Due to the shortage of resources, it is difficult to find one silicon material in stock. Some silicon material enterprises reported that the latest quotation of 80 yuan / kg has also been traded at a high level. In the face of silicon materials with a cumulative increase of 20 yuan / kg and 33% in two weeks, the final transaction price really needs to be tested by the market.

As for the market level, Gai tin consulting said in the report that in the face of fierce inquiry and more demand, some silicon materials enterprises have to continue to rise slightly. Although the price of silicon materials rebounded rapidly and the material factories have profits at present, the cliff like decline of silicon material price in the first half of the year also prompted some material factories to reduce production and repair in the first half of the year Recovery of losses in the previous period.

According to Zhixin consulting analysis, at present, the price increase of Longji and Zhonghuan (002129. SZ) and the price increase of battery manufacturers such as Tongwei (600438. SH) are mainly to digest the pressure of silicon material rise. The increase is basically linked with the increase of silicon material, but it does bring a blow to the component enterprises with the weakest voice.

As for the chain reaction in the downstream, the aforementioned industry insiders told the first finance and economics reporter that the cost and installation progress of the downstream EPC power station will indeed be affected by the price rise of the industrial chain, but the scale of the impact is limited. It is speculated that the reduction of installed capacity caused by this will not exceed 5GW.

Compared with the short-term impact, Zhong Baoshen believes that in the long run, the demand for photovoltaic will continue to grow, and the expansion of production will also continue. In the face of concerns about overcapacity in the industry at present, Zhong Baoshen has his own views. He told reporters of the first finance and Economics: the surplus of photovoltaic industry is phased. In 2011, the global photovoltaic capacity reached 45gw, but the demand was only 30GW, which caused serious overcapacity. However, by 2019, the demand had reached 110gw. Looking back, in fact, by 2013, the capacity and demand will be flat, because the capacity construction is sudden, but the demand has been growing. Zhong Baoshen said. However, Zhong Baoshen also said that if the technology chosen by enterprises is backward, and when the market is growing, the market needs better products instead of products produced by backward production lines, then the investment in this production line will be wasted and the enterprises will be eliminated accordingly. Therefore, he suggested that photovoltaic enterprises should pay attention to the efficiency of investment and life cycle management of equipment when investing in production lines. Source: editor in charge of Finance and Economics: Zhong Qiming_ NF5619

In 2011, the global photovoltaic capacity reached 45gw, but the demand was only 30GW, which caused serious overcapacity. However, by 2019, the demand had reached 110gw. Looking back, in fact, by 2013, the capacity and demand will be flat, because the capacity construction is sudden, but the demand has been growing. Zhong Baoshen said.

However, Zhong Baoshen also said that if the technology chosen by enterprises is backward, and when the market is growing, the market needs better products instead of products produced by backward production lines, then the investment in this production line will be wasted and the enterprises will be eliminated accordingly. Therefore, he suggested that photovoltaic enterprises should pay attention to the efficiency of investment and life cycle management of equipment when investing in production lines.