There has been a price cut throughout the photovoltaic industrial chain this week, showed the data from several research institutions. From silicon materials and wafers to cells and modules, every product was sold at a reduced price. Among others, silicon wafers saw the biggest price cut.

According to the prices released by PV InfoLink, the average price of dense polysilicon fell by 3.8%; that of silicon wafers dropped by 6.4%-11.6%; that of battery pieces of all sizes went down by 5.8%-8.4%; and that of modules declined by about 2%.

As far as PV InfoLink was concerned, a "price war" has broken out on monocrystalline silicon wafers. Since last week, the prices of the products of main specifications have been going down faster and faster. Take some leading silicon wafer makers as an example. The prices of their silicon wafer products were lower day by day by a remarkably large margin. This has resulted in stiff price competition in the silicon wafer market.

As the prices of silicon materials and wafers continue to go down, more and more institutions frequently mention the investment logic of "profit transmission to other links". According to a research report released by Huafu Securities in December, there is a general consensus among the industry about the strong demand for photovoltaics, and the profits unleashed from 2023 will be transmitted to the midstream and downstream industrial chain, so the key of the later stage is to judge which link can retain the most profits after a fall in the prices of silicon materials. Besides, Topsperity Securities said that the profit generated due to the price cut in the upstream industrial chain temporarily stays in the link of battery pieces, and the link of auxiliary materials is also expected to benefit from the price cut.