Global Demand Exceeds Expectations and the Photovoltaic Industry Chain Continues to Benefit

The global demand has increased beyond expectations, making the upstream and downstream of the photovoltaic industry chain continue to benefit, and the industry companies are making a lot of profits. Recently, a number of leading enterprises involved in the production of silicon materials, photovoltaic modules, and battery sheets have disclosed three quarterly reports or performance forecast. It says in the product price soared, output continues to release the good effect, profits of related companies increased significantly year-on-year.

Tongwei shares the company's net profit of more than 2.760 billion USD in the first three quarters of 2022. On the evening of October 20, the company disclosed its first three-quarter performance report. According to preliminary calculations, in the first three quarters of 2022, Tongwei achieved operating income of 14.086 billion USD, a year-on-year increase of 118.6%; net profit was 2.998 billion USD, a year-on-year increase of 265.54%.

In addition to Tongwei, on the evening of October 20, JinkoSolar, which is mainly engaged in the production of solar photovoltaic modules, cells, and silicon wafers, also disclosed that the company is expected to achieve a net profit of 0.228 billion to 0.235 billion USD in the first three quarters of 2022. Compared with the same period of last year, it will increase by 0.128 million USD to 0.135 million USD, a year-on-year increase of 128.77% to 135.7%.

On the evening of October 19, TCL Zhonghuan, another leading silicon material company, also disclosed that in the first three quarters of 2022, the company achieved operating income of 6.878 billion USD, a year-on-year increase of 71.35%; net profit was 5.489 billion yuan, a year-on-year increase of 68.94%.

The global demand exceeded expectations, which is an important support for stimulating the performance of related companies. Affected by factors such as geopolitics, Russia-Ukraine conflict, and energy shortages in overseas markets, the demand in Europe, India, Brazil and other regions has increased significantly. From January to August, the export volume of modules from mainland China reached 113.4GW, an increase of 81% year-on-year.

In 2022, driven by demand, the silicon material industry will usher in a situation where both volume and price will rise. The data shows that in the first half of 2022, the average price of silicon single crystal dense material reached a maximum of 237530 USD/ton, and the average price of 182mm and 210mm mainstream silicon wafers in June increased by 13% and 16% respectively compared with January. The average price in June rose by 9% and 11% respectively from January.

At the same time, based on good expectations for the global photovoltaic market, in recent years, various links in the industrial chain have actively expanded production capacity. It is predicted that by the end of 2022, the global cumulative production capacity of silicon materials, silicon wafers, cells and modules will reach 1.17 million tons, 528GW, 573GW and 634GW respectively.

With the gradual release of new production capacity, the contradiction between supply and demand in the industrial chain is expected to be alleviated, and the correction of product prices will further stimulate the growth of terminal demand, and the development of the global photovoltaic market may start an accelerated mode.