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Product & Technology
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30
2024
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08
Silicon Wafer Price Hike: A Call for Rationality in the Solar Industry
The solar industry is witnessing a pivotal shift as silicon wafer titans LONGI and TCL ZHONGHUAN announce a price increase, aiming to reshape market dynamics and steer the industry towards healthy competition. While the outcome remains to be seen, the move reflects a growing consensus among industry players and stakeholders for a sustainable development path in the photovoltaic sector.
Despite the diverse contexts behind the price hike, this strategy signifies a profound reflection on the ongoing price wars and is poised to mark the beginning of a new chapter in the industry's development.
However, whether the price increase will trigger a domino effect on cell prices and ignite new industry-wide negotiations is a question that warrants attention. How should companies navigate between low-cost competition and rational management? Should they continue to maintain market share through low prices, or even lower them to capture more of the market, or should they adjust their pricing strategies in tandem? This is not just an economic issue but also a strategic choice.
Historical lessons from the industry suggest that while low-cost competition can expand market share in the short term, the practice of pricing below cash costs across the entire industry is rare. Moreover, a market built on self-harm is more likely to undermine the industry's healthy development in the long run and could trigger broader anti-dumping and countervailing investigations.
At this stage, solar companies should focus on technological innovation and product quality, establishing a healthy competitive mechanism to drive the industry towards a positive trajectory.
Source: Xianhua New Energy
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