Solar cell prices in China have hit record lows, according to OPIS. The latest data showed that the prices of monocrystalline M10 and monocrystalline G12 cells fell by more than 3 per cent to $0.0865 and $0.0856 per watt respectively, while the price of TopCon M10 cells dropped by 0.41 per cent to $0.0965 per watt.

A source familiar with the matter pointed out that the main reason for the drop in cell prices was the downturn in the module market. Some module factories do not have their own cell capacity and have adopted various strategies to reduce production, the source added. Prices of monocrystalline PERC and TopCon modules have also reached historical lows, according to OPIS.

Whether cell makers will cut production is still under discussion, given the sharp drop in cell prices. One industry source said some smaller manufacturers plan to shut down production during China's Golden Week (early October), reflecting the bleak outlook for the cell market and hinting at a drop in output.

However, there were also dissenting views. Another source said that if battery production did fall, the drop would only be slightly less. The source noted, "The overproduction of batteries is not very serious relative to the entire supply chain." He was referring to overproduction in polysilicon, wafers and modules.

On the other hand, lowering prices is a strategy for cell mills to maintain a 100 per cent start-up rate. He explained that the growth rate of wafer supply and the strategy of module manufacturers will be the key factors in determining whether production will be reduced in the cell sector.

According to the source, "The decline in module production may force cell production to drop slightly in late October and early November." He added that end users will reduce their module purchase orders as they have already secured enough supply to meet the demand for PV installations by the end of the year.

In addition, solar cables are becoming critical as the solar industry grows. Solar cables are a key component in connecting solar panels to equipment such as inverters, ensuring the efficient transmission of energy and providing a guarantee for the stable operation of PV systems. As the price of batteries falls, the demand for solar cables is likely to increase to support the growing popularity of solar technology.