In a research report dated September 25, Hua'an Securities noted that the photovoltaic (PV) glass industry has reached a profitability turning point, with tightening supply at the margin being conducive to price stability.

Supply Tightens and Demand Improves, Prices Stabilize with Room for Increase:

On the supply side: According to statistics from the Ministry of Industry and Information Technology (MIIT), cumulative production of PV rolled glass from January to August this year reached 15.94 million tons, a year-on-year increase of 65.5%. Production in August alone was 2.22 million tons, up 56.6% year-on-year. Looking ahead to the second half of the year, we expect the pace of industry supply to further slow under policy influence.

On the demand side: Demand for PV modules has been rising since late July, leading to a decline in the high inventory levels of the PV glass industry. As silicon material prices stabilize after adjustments, module production scheduling rates are expected to accelerate.

2. Costs Continue to Decline, Industry Profitability Improves Quarter by Quarter:

Raw materials and fuel each account for approximately 40% of PV glass production costs. In the third quarter, soda ash prices saw a slight rebound due to tightening supply. However, prices are expected to retreat after the off-season as new supply comes online, supporting a projected improvement in the PV glass industry's profit margins.