The Chinese holiday has begun: how does this impact the solar market?

The start of the Lunar New Year in China is already having repercussions in the global supply chain of the photovoltaic sector. The temporary shutdown of factories, ports, and commercial offices is reducing the pace of production and shipments of modules, cells, and strategic inputs.

According to Infolink Consulting, with the approach of the Lunar New Year holiday in China, several factories have brought forward their employees' holidays, and last week's shopping activities have been postponed until after the holiday.

International logistics are also experiencing a slowdown, with lower shipment volumes and longer delivery times.

With the temporary reduction in production and shipments, distributors and integrators in different markets are facing adjustments to delivery schedules.

According to Infolink Consulting, companies that rely on direct imports placed orders in the weeks leading up to the holiday to avoid shortages.

In the spot market, lower availability can influence short-term negotiations, especially in contracts with tight deadlines. Long-term supply agreements, on the other hand, tend to absorb occasional fluctuations better, although they may still undergo logistical revisions.

Impact on international prices

Infolink Consulting also points out that the recent volatility in silver prices, marked by sharp increases followed by falls, has led to fluctuations in module production costs. In response, module manufacturers have increased prices in line with their respective cost structures.

“The average price of a TOPCon module in China is 0,739 RMB/W, with the average transaction price for distribution projects at 0,76 RMB/W. In markets outside China, the average price of TOPCon modules is USD 0,096/W,” the consultancy reported.

Orders for modules are also being widely renegotiated in response to export tax refund measures, resulting in upward adjustments to prices in local markets.

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