(Yicai) Aug. 28 -- Longi Green Energy Technology and TCL Zhonghuan Renewable Energy Technology have confirmed that the leading Chinese makers of silicon wafers for photovoltaic cells will raise their prices.

The cost of Longi’s N-type G10L and G12R silicon wafers will increase to CNY1.15 and CNY1.30 (16 US cents and 18 US cents) apiece from tomorrow, from CNY1.06 to CNY1.08 and CNY1.20 to CNY1.23, a representative for the Xi’an-based company told Yicai.

The price hike aims to help the photovoltaic industry move away from low-price competition, the person added.

The average sales price of N-type G10L wafers fell 6.5 percent to CNY1.08 apiece on Aug. 22 from a week earlier, according to data from the Silicon Branch of the China Nonferrous Industry Association. The average for N-type G12 wafers dropped 6.3 percent to CNY1.50.

A representative for TCL Zhonghuan also told Yicai that the Tianjin-based company will increase the prices of three N-type wafers.

If wafer prices are increased, specialized cell manufacturers will likely scale back production next month, helping to ease the production schedule at PV panel factories, according to Mao Tingting, an analyst at the Shanghai Metals Market.

Wafer production cuts are a positive move to steady the various parts of the solar industry chain in the medium-to-long term, the Silicon Branch of the CNIA pointed out. After the painful short-term decline in prices, supply and demand are expected to are expected to improve further in the medium-to-long run, with prices gradually stabilizing, it added.

The operating ratio of major solar silicon wafer makers is about 60 percent, Yicai learned. However, industry insiders believe the price hikes are more about testing downstream reaction and improving market sentiment than lowering operating ratios.

Editor: Futura Costaglione