China Solar: Tracking Profitability Inflection

The report analyzes May 2026 data for the China solar sector, noting price stabilization in the main value chain but significant demand weakness, particularly a 79% YoY drop in April China installations.

Key Takeaways

• 1.Pricing has stabilized across the main solar value chain in May, though transactions remain slow due to subdued visibility on module orders.
• 2.Global module demand saw a sharp year-on-year decline of 58% in April 2026, driven largely by significant weakness in the Chinese domestic market.
• 3.Downside pricing risks persist due to increasing upstream supply (Polysilicon) and high inventory levels, which reached 57 days for glass.

Table of Contents

• Key highlights in May MTD
• What to do from here?
• Profitability improved in Module but deteriorated in Glass
• Apr-26 Global demand declined by 58% yoy to 33GW
• Price Target Risks and Methodology
• Disclosure Appendix

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