Orders decline 5-20% of solar panel aluminum frames. What should we do?

Yinsheung Aluminum  2023-12-22 10:34 Published in Foshan

Part A -Suitation in 2023.

From July in 2023, the number of new installed solar panel units began to decline monthly.

The growth rate slowed down gradually. Coupled with the impact of some enterprises reduce stocking, and many aluminum frame production enterprises began to feel a strong competition in the industry.

In recent market research by Mysteel of some solar frame aluminum profile companies shown it was found that the solar frame profile orders of the 5 sample by 5 different companies which decreased by about 5-20% compared from October to September.

And the open rate of the companies also decreased, with some even 50% half as before. Many companies also maintain a pessimistic attitude towards the future market situation. Under the dual challenges of slowing downstream demand and reduce stocking by some large factories, Mysteel expects that the production capacity of photovoltaic profiles will concentrate on top enterprises, and the declining in industrial profile production will continue to expand.

Under the situation for cost reduction and efficiency improvement, the company of  aluminum frames face internal and external difficult.

In fact, in addition to the internal competition in the solar industry, the companies of aluminum frames are also facing challenges from the outside.  Solar frames are an important component of modules. The above data shows that the cost of the battery cells accounts for about 55% in the total cost of the whole structure of solar modules.

The proportion of aluminum frames is about 13% in the current commonly used solar panel, which is higher than other auxiliary materials such as EVA, glass, backboard, solder tape, etc.

 It is the auxiliary material with the highest cost proportion.