FLAT GLASS (06865) shares plunged 5.32% in intraday trading, reflecting a broader decline in Hong Kong-listed solar stocks. The sharp downturn comes as the solar industry grapples with oversupply issues and weakening demand, putting pressure on companies across the sector.

The selloff in solar stocks was triggered by reports of significant price cuts by multiple silicon wafer manufacturers. Market data revealed that prices for various types of silicon wafers have decreased, with 183N wafers now priced between RMB 1.25-1.30 per piece. This pricing pressure is a clear indication of the challenges facing the industry, particularly the oversupply situation that has been exacerbated by excessive outsourcing.

Analysts point to several factors contributing to the current market conditions. November has seen battery manufacturers tightening demand and imposing price caps on purchases, leading to a sharp reduction in orders. This has prompted cash-strapped second- and third-tier silicon wafer producers to engage in panic selling, further depressing prices. The weak downstream demand for solar products, coupled with a volatile pricing environment, has created a perfect storm for companies like FLAT GLASS. Industry observers are now closely watching for any signs of implementation of price floor policies by silicon material producers and progress in capacity consolidation within the solar sector, which could potentially stabilize the market.