FLAT GLASS (06865) shares plummeted 7.10% during intraday trading on Friday, as the solar sector faced a collective decline. Other solar stocks also experienced significant drops, with XINTE ENERGY (01799) falling 7.36%, XINYI SOLAR (00968) declining 4.45%, and FUYAO GLASS (03606) dropping 2.46%.

The sharp decline in solar stocks can be attributed to weak domestic demand and industry challenges. According to the National Energy Administration, domestic solar installations in August totaled 7.4GW, representing a substantial year-over-year decrease of 55.3% and a month-over-month decline of 33.3%. Securities analysts highlight that Q3 domestic terminal demand support remains weak, leading to a temporary decline in production scheduling. Additionally, policy measures are being implemented to address solar industry involution, with polysilicon prices becoming a key focus at current levels of 50+ yuan/kg.

Looking ahead, the solar industry faces a complex landscape. While prices for polysilicon, silicon wafers, cells, and solar modules have increased in September, upstream price gains have outpaced downstream increases. Solar glass prices have shown signs of recovery due to production cuts by leading companies and reduced industry inventory. However, the overall market lacks momentum following earlier rush installations, with centralized projects now driving installation demand. Analysts expect solar industry chain prices to stabilize, considering terminal component price acceptance capacity and the impact of anti-involution measures.