The center of the world's photovoltaic industry is China… Therefore, like the other components of the industry, the largest photovoltaic glass producers in the world also produce in China. The Chinese government has restricted imports of many raw materials in order to protect producers with value-added output. Western companies moved their production facilities to the Asian region in order to compete in global markets. This investment tactic increases the profits of companies and enables them to meet the demand in their own countries. However, this situation is not valid for our country in the photovoltaic sector. Since the photovoltaic production based in our country is very limited, almost all raw material needs are met mainly from China and other foreign countries. China cannot be an option in glass supply due to anti-dumping. China's large glass companies are establishing production facilities in other Asian countries in order to overcome the anti-dumping practices applied to their countries.
Currently, the majority of the market consists of single sided glass panels. On the other hand, the demand for double-sided glass panels is increasing and this rate will reverse by the end of the year. This means that the demand for glass is doubling day by day. The thickness of the glass used continues as 3.2 mm. However, with the increasing demand of the market, glass producers are increasing their production in thicknesses of 2 mm and less. The thinning in glass thickness reduces the consumption of raw materials and therefore the production cost, and forces the need for new technology supports. Frames that increase strength, transparent backsheets and other new technologies are trying to meet the demand in the market.
As it is known, the demand for glass in our country has been met by a single domestic manufacturer for many years. This local manufacturer is getting ready for new investments to meet the increasing demand of the photovoltaic sector, which is still developing in our country, but this preparation may take a few years. The manufacturer strives to harness the strength and flexibility of its dealers to meet the growing demand. This method will lead to positive developments. The conditions of the Yeka (renewable energy resource field) projects make it compulsory to establish new production facilities in our country. This policy will support the supply requirement and opportunity.
The production of double-sided glass panels, which started last year, caused the glass prices to rise. The pressure created by projects postponed due to Covid 19 and decreasing panel demand, transparent backsheet and other new technologies on glass demand reflected the market as a decline in glass prices starting from the beginning of this year.
Let's analyze the sales tactic of a major glass manufacturer in China to understand the impact of the situation in the glass market.
Thickness Feature Unit Price Total
2 mm Windshield 3.47 usd / m2
2 mm Rear Glass 5.18 USD / m2 8.65 USD / m2
2.5 mm Windshield 3.89 usd / m2
2.5 mm Rear Window 5.61 USD / m2 9.5 USD / m2
3.2mm Windshield 4.06usd / m2
3.2 mm Rear Window 4.06 usd / m2 8.12 usd / m2
(The stated prices reflect the rates, but differ.)
As can be seen in the table above; The price of glass, which started with a thickness of 2 mm at 8.65 USD / m2, increased with the consumption of 2.5 mm thick raw material, but decreased with a thickness of 3.2 mm. The pressure of 3.2mm thick market competition and the use of backsheet has highlighted the price decline as a selling tactic. In the upcoming period, we will see the impact of the pressure of new technologies on glass prices more clearly. On the other hand, it is obvious that it is necessary to work with long-term contracts without ignoring that the producers' production lines are filled even during this transition period.
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