SHANGHAI, Aug 18 (SMM) – Lately, the photovoltaic industry's surge has boosted order volumes and operations for associated extrusion businesses. How sustainable is the growth trend in the photovoltaic industry? What's the production status of the related extrusion companies? Are the conversion margins for photovoltaic frames and brackets rebounding? To address these burning questions, SMM has communicated with a number of photovoltaic extrusion manufacturers, ranging from large to small, dispersed across places like Anhui, Shandong, Hebei, and Guangdong. Here's a succinct summary of the findings.
Company A: Based in Anhui, with an annual production of 50,000 to 70,000 mt of aluminium extrusion, engaged in photovoltaic frame and bracket production, and collaborates with leading photovoltaic firms.
Company Perspective: Photovoltaic orders have been on the rise since mid-to-late July, peaking in August. The production schedule is now booked through September. However, conversion margins have seen little change, with low-price competition still prevalent. In May and June, with fluctuating silicon prices, downstream customer hesitance led to a notable drop in orders. Now, with silicon prices stabilizing, and this year's photovoltaic installation targets unmet, end-user businesses are ramping up for the second half of the year, boosting demand.
Company B: Based in Anhui, producing approximately 120,000 mt of aluminium extrusion annually, and engaged in both photovoltaic frame and bracket manufacturing.
Company Perspective: Since August, the photovoltaic sector has seen an uptick in order volume and operational activity. The company itself is bullish on the photovoltaic market, seeing substantial demand. Hence, it laid out plans in 2022 to boost photovoltaic capacity. As of late July this year, it successfully launched an additional 20,000 mt of photovoltaic capacity, which is currently undergoing smooth trial operation.
Company C: Located in Shandong, with an annual production of roughly 300,000 mt of aluminium extrusion, and engaged in the photovoltaic industry.
Company Perspective: Main interactions occur with module manufacturers. Although photovoltaic demand has surged, the harsh low-cost competition and discounts make profitability a challenge, typically resulting in a break-even scenario. Despite rising demand, conversion margins struggle to recover.
Company D: Located in Hebei, producing about 200,000 mt of aluminium extrusion annually, mainly for photovoltaic frames.
Company Perspective: The photovoltaic sector saw a resurgence late July, accompanied by a surge in orders. Full production capacity is currently being utilized and is projected to continue throughout August." "The swift rise in orders primarily stems from falling silicon prices and increased activity from downstream module manufacturers."
