FLAT GLASS (06865) saw its stock price plummet by 5.32% in intraday trading, as the solar industry faces headwinds from oversupply and price cuts. The sharp decline reflects broader concerns in the solar sector, with several other solar stocks also trading lower in Hong Kong.

The drop in FLAT GLASS's share price comes in the wake of reports indicating price cuts by multiple silicon wafer manufacturers. Market data reveals that prices for various types of silicon wafers have decreased, with 183N silicon wafers now priced between RMB 1.25-1.30 per piece, and 210R silicon wafers at RMB 1.28-1.30 per piece. This pricing pressure is attributed to an oversupply situation in the silicon wafer market, exacerbated by excessive outsourcing.

Adding to the sector's woes, battery manufacturers have tightened demand and imposed 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. Analysts note that the current pricing environment remains volatile, recommending a wait-and-see approach. The market is closely monitoring the implementation of price floor policies by silicon material producers and progress in capacity consolidation within the solar industry, as these factors could influence the sector's recovery.