Is the new quotation for photovoltaic glass in September expected to increase? Industry leader FLAT: Currently discussing prices with customers

Recently, Shanghai Nonferrous Network reported that some photovoltaic glass companies have begun quoting new orders for September, with the benchmark price for 2.0mm single-layer coated (panel) being raised to 13 yuan/square meter, an increase of 2 yuan/square meter compared to the new order price in July.

On August 28, staff from the photovoltaic glass leader FLAT (601865.SH, stock price 17.69 yuan, market value 41.446 billion yuan) stated in a phone call to the Daily Economic News that photovoltaic glass prices are generally negotiated monthly, and the new order quotes for September are still under discussion with customers.

On the 27th, FLAT released its semi-annual report for 2025, stating that the company achieved operating revenue of 7.737 billion yuan in the first half of the year, a year-on-year decrease of 27.66%; the net profit attributable to shareholders was 261 million yuan, a year-on-year decrease of 82.58%. The company attributed the revenue decline mainly to the decrease in both the sales price and sales volume of photovoltaic glass.

FLAT has reduced production capacity supply

As a leading company in photovoltaic glass, FLAT's revenue contributions from photovoltaic glass from 2022 to 2024 were 88.49%, 91.42%, and 90.01%, respectively. In the first half of this year, the revenue contribution from photovoltaic glass was 89.76%, marking the first time in two years that it fell below 90%.

"During the rush to install in the first half of the year, photovoltaic glass prices briefly rebounded, but the introduction of new capacity caused prices to plummet to historical lows after the rush. Under intense competition, the entire industry is under profit pressure. Faced with immense pressure, small-scale, high-cost, and technologically backward capacities have exited or undergone cold repairs, reducing production capacity supply and accelerating the industry's clearing, which has become an important task for the industry to gradually emerge from difficulties," FLAT explained.

According to the semi-annual report for 2025, under the pressure of supply-demand imbalance and price decline, FLAT flexibly adjusted its strategic deployment and reduced production capacity supply. As of the date of the semi-annual report disclosure, the company had cold-repaired three photovoltaic glass furnaces, with current production capacity at 16,400 tons/day.

"Compared to the glass daily melting capacity of 19,400 tons/day at the end of 2024, the company has reduced 3,000 tons/day through cold repairs this year," said the aforementioned FLAT staff member.

On August 27, FLAT also released an announcement regarding the provision for asset impairment for the first half of 2025, stating that the company made a total provision for impairment losses on relevant assets within the scope of the consolidated financial statements as of June 30 amounting to 254 million yuan, a year-on-year increase of 172.92%. Among them, the provision for inventory impairment losses was 113 million yuan, and the provision for fixed asset impairment losses was 141 million yuan.

Due to the early cold repairs of photovoltaic glass furnaces by FLAT's photovoltaic panel subsidiary, combined with the provision for inventory impairment, the company's inventory balance as of the end of June was 1.958 billion yuan, with an inventory impairment provision of 153 million yuan. This was mainly due to the decline in prices of raw materials, low-value consumables, and finished products, as well as increased pressure to reduce product inventory.

In addition, for the first half of 2025, FLAT reported a total credit impairment gain of 13.2706 million yuan and total asset impairment losses of 254 million yuan, resulting in a total reduction of 241 million yuan in the profit before tax of the consolidated financial statements for the first half of 2025

Rising Fuel Prices May Support Glass Prices

According to a research report by CCB International, under pressure from losses, the photovoltaic glass industry has significantly reduced production since June, with domestic production capacity dropping from 100,000 tons/day at the end of May to 89,000 tons/day at the end of July. Meanwhile, against the backdrop of "anti-involution," downstream component companies have strong expectations for a rebound in glass prices.

As a result, starting from mid-July, component companies began to stock up at low prices, leading to a supply shortage. The industry's inventory days quickly decreased from 36 days in mid-July to the current 20 days, a new low since May 2024, pushing the price of 2.0mm glass per square meter up from a low of 10.5 yuan to 11 yuan.

On August 19, the Ministry of Industry and Information Technology and five other ministries jointly held a symposium on the photovoltaic industry, clearly requiring the crackdown on illegal activities such as selling below cost, indicating an increased certainty in the photovoltaic industry's "anti-involution." CCB International's report anticipates that subsequent measures prohibiting sales below cost will gradually be extended from main materials to auxiliary materials, thereby promoting the elimination of backward production capacity and returning product prices to a reasonable level.

On the 28th, staff from photovoltaic glass manufacturer CSG New Energy (600876.SH) told the Daily Economic News that this year the company has adjusted its structure and shut down two small production lines, reducing daily melting capacity by 1,300 tons, with the current daily melting capacity at 5,000 to 6,000 tons.

A staff member from FLAT analyzed that although the current industry supply and demand have improved, and the prices of raw materials such as soda ash are relatively stable, as the northern region enters the heating season in the fourth quarter, rising fuel prices may support glass prices. However, caution is needed regarding the potential impact on photovoltaic glass prices from some companies restarting production.

According to a research report by Dongfang Securities, as of August 22, the mainstream price of domestic photovoltaic glass 2.0mm coated glass was 11 yuan/square meter, and the mainstream price of 3.2mm coated glass was 18 yuan/square meter, both unchanged from the previous week. In August, photovoltaic glass prices were mainly driven by internal industry meetings, with glass groups successfully raising prices.

Recently, some companies in the photovoltaic glass market have resumed kiln production, mainly due to downstream companies increasing their stockpiling in response to the cancellation of export tax rebates for components. Additionally, the market has begun to release news of price increases in September.

On the demand side, influenced by the cancellation of export tax rebates for components, downstream stockpiling is ongoing. However, as there has been no substantial improvement in terminal power stations, it is expected that after the implementation of the export tax rebate cancellation policy, there is a significant risk of a sharp decline in shipments from photovoltaic glass manufacturers.

Furthermore, Dongfang Securities' report analyzes that recent continued stockpiling by downstream companies has led to a continuous decrease in inventory for several photovoltaic glass manufacturers, with some companies having less than a week's worth of inventory. With the rise in photovoltaic glass prices, industry profits have recently rebounded. Overall, the current low inventory in the industry provides good support for price increases.

Author: Huang Xinlei, Source: Daily Economic News, Original Title: "Will New Quotation for Photovoltaic Glass in September Be Adjusted? Industry Leader FLAT: Currently Discussing Prices with Customers" Risk Warning and Disclaimer

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