Silver Price Surge Hits PV Cell Industry; Eging Photovoltaic's Shutdown Becomes a Landmark Event

Based on the latest data and market research, I will conduct a systematic analysis for you.

According to market data, silver prices have experienced a sharp rise since the start of 2023:

Time Node	Silver Price (RMB Yuan/kg)	Increase
Early 2023	3,800	Benchmark
December 2025	9,800	+157.9%

In the international market, silver prices have soared from 28.849 USD per ounce at the start of the year to 65.93 USD per ounce, an increase of over 128%. [1][2]

Silver paste, as a key auxiliary material for photovoltaic cells, has a significant impact on costs:

• Silver paste cost ratio
  : Over 50% of non-silicon costs of cells [3]
• Silver consumption level
  : Approximately 9mg/W for TOPCon technology route
• Cost transmission coefficient
  : For every 1,000 yuan/kg increase in silver price, cell cost rises by about 0.01 yuan/watt (1 fen/watt)

: A 157.9% increase in silver prices has led to an approximate increase in cell costs. Combined with silicon material price hikes, the comprehensive cell cost in 2025 has risen by about (10 fen/watt). [2]

Eging Photovoltaic (600537.SS), as an established PV enterprise, its production suspension has landmark significance:

Indicator	Data	Interpretation
Total Capacity	12.5GW (5GW PERC +7.5GW TOPCon)	Medium-scale enterprise
Silver Paste Cost Ratio	33%	Higher than industry average
Silver Consumption Level	9mg/W	Mainstream technology route

According to the latest financial data, Eging Photovoltaic has fallen into severe financial distress [1][2]:

Revenue scale: 375 million yuan (YoY -27.96%)
Net profit: Net loss of 61.24 million yuan
Operating cash flow: Only 61.66 million yuan
Monetary funds: 786 million yuan
Short-term liabilities: >2.5 billion yuan
Cash-to-short-term-debt ratio: <0.32 (seriously below safety threshold)

:

• Negative operating cash flow for two consecutive quarters
• Cash-to-short-term-debt ratio below the 0.5 warning line
• Short-term liabilities are more than three times monetary funds

Eging Photovoltaic’s production suspension aligns with the industry-calculated “Four Key Thresholds” model [2]:

1. Cash cost line breach
   : The silver price surge has completely broken through the basic profit margin
2. Cash flow exhaustion
   : Operating cash flow cannot cover daily operations
3. Financing channel disruption
   : High debt ratio restricts refinancing capacity
4. Inventory pressure limit
   : Capacity utilization continues to decline

The Eging Photovoltaic case reveals deep-seated problems in the PV industry:

:

• Upstream silicon material segment: Stabilized prices through production control (from 41,500 yuan/ton to 53,200 yuan/ton)
• Downstream cell module: Dispersed concentration, poor execution of production control self-discipline
• Supply-demand imbalance intensifies: Cell output from January to October 2025 still increased by 9.8% YoY [2]

:

• PERC technology is near efficiency ceiling, with huge iteration pressure
• TOPCon is mainstream, but silver consumption is a fatal flaw
• New technologies like HJT and BC have not yet formed scale effects

The industry is currently in the “passive capacity reduction” phase [2]:

Indicator	Jan-Oct 2025 Data	YoY Change
Polysilicon output	1.113 million tons	-29.6%
Silicon wafer output	567GW	-6.7%
Cell output	560GW	+9.8%
Module output	514GW	+13.5%

: Upstream reduces production to stabilize prices, while downstream continues to expand output, exacerbating supply-demand imbalance

Based on the Eging Photovoltaic case, industry participants need to focus on the following survival rules:

:

• Promote silver-clad copper, copper paste and other low-silver technologies
• Improve cell conversion efficiency to dilute silver consumption
• Strengthen strategic cooperation with upstream silver paste enterprises

:

• Proactively phase out outdated capacity
• Improve integration level to enhance risk resistance
• Exercise prudent expansion to avoid heavy asset burdens

:

• Accelerate R&D of low-silver-consumption technologies such as HJT and BC
• Pay attention to breakthroughs in silver-free technologies
• Establish technology reserves to address long-term challenges

Eging Photovoltaic’s production suspension is a landmark event at the bottom of the PV industry cycle, and its impact goes far beyond the individual case:

1. Silver price becomes a catalyst for industry consolidation
   : The 157.9% increase directly breaches the cost thresholds of many enterprises
2. Industry chain game intensifies
   : Imbalance in upstream-downstream interest distribution makes production control self-discipline difficult to implement
3. Technology route choice is a matter of life and death
   : Silver consumption level has become a key indicator of enterprise competitiveness

: If silver prices remain at current high levels for 2-3 months, most cell manufacturers are expected to face production suspension pressure; if it stays high for more than half a year, integrated module enterprises will also be affected. [2] The PV industry is undergoing its most severe reshuffle in history, and survival will be the prerequisite for future competition.

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[1] Sina Finance - Under Silver Price Surge, Cell Enterprises Will Shift from Production Control to Ensure Prices to Production Suspension! (https://finance.sina.com.cn/roll/2025-12-30/doc-inhepnty4409933.shtml)

[2] Wall Street News - Under Silver Price Surge, Cell Enterprises Will Shift from Production Control to Ensure Prices to Production Suspension! (https://wallstreetcn.com/articles/3762276)

[3] China.com Finance - PV Breakthrough: “Anti-Involution” Challenge Overcoming and Value Reconstruction in the Comprehensive Adjustment Period (https://finance.china.com/xiaofei/13004691/20251209/49058345.html)