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China's photovoltaic industry under epidemic situation

2020-02-27

The outbreak of China's new crown virus epidemic has indeed impacted global photovoltaic module supply, but the actual impact of the epidemic may not be as pessimistic as people think.



I. Impact of photovoltaic supply chain spreads overseas
The manufacturing capacity of China's crystalline silicon products accounts for 72-96% of the world. Factories outside China mainly produce batteries and modules, relying on silicon wafers and battery chips supplied by China. Therefore, the impact of China's photovoltaic industry chain will not only impact the market of China's photovoltaic module export destinations, but also the market of modules purchased from other countries, such as the United States.

2. Sources of influence
The impact of the photovoltaic supply from the epidemic situation mainly comes from three aspects: First, due to travel restrictions and home isolation periods of up to 14 days, workers cannot return to work on time; Second, insufficient inventory of packaging, junction boxes, aluminum frames and other materials, supply Restricted. Many suppliers of raw materials stopped work during the Spring Festival and it was difficult to resume production. Third, due to the small number of trucks, road control, and the isolation period of goods exported from China to some countries, the overall logistics speed was slow.

3. Expectations for the future

The global photovoltaic module prices are still generally stable, and so far, the impact on the photovoltaic manufacturing industry is generally controllable. This is due to the high operating rates maintained by large manufacturers during the Spring Festival and material inventory. And most photovoltaic manufacturing locations are relatively lightly affected by the epidemic.


NEBNEF expects that the outbreak will affect less than 5% of module production throughout the year. If the epidemic situation can be controlled in the first quarter of this year, oversupply in all aspects of the photovoltaic industry chain and the continuous expansion of manufacturers will ensure sufficient supply of photovoltaic products in 2020.
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