'Ceaseless' polysilicon price rises in China as production drops below forecasts
- Polysilicon prices have actually continued to climb up in China in the middle of limited supply as suppliers are hit by power rationing.
The average price for polysilicon in the country reached RMB273.1/ kg this week (US$ 40.73/ kg, inclusive of China's 13% sales tax), a 1.71% boost week-on-week, according to the silicon branch of the China Nonferrous Metals Industry Association. Media reports recommend the most up to date price represents an 11-year high.
One polysilicon manufacturer reduced result today because of power rationing, while one more had an unexpected shutdown, the association said.
"The polysilicon prices are so high because demand is solid and also supply is restricted", said Jenny Chase, head of solar analysis at research organisation BloombergNEF, including that there was also a temporary impact from an accident in a manufacturing facility recently, though this "is expected to be minor in the yearly context".
Citing details from the China Nonferrous Metals Industry Association, Johannes Bernreuter of polysilicon research company Bernreuter Research stated Xinjiang GCL, Daqo and also East Hope are planning maintenance in July, indicating polysilicon manufacturing will be flat month-on-month, far lower than the association's original forecasts.
The continual price rises have resisted estimates that rates would certainly decrease as even more capacity comes onstream.
Research released the other day by industry expert PV InfoLink kept in mind that there have actually been "ceaseless price walkings" in Q2, as it said the polysilicon scarcity "reveals no indication of easing".
This year has seen polysilicon manufacturers including Tongwei, Zhonghuan Semiconductor (TZS) and also Daqo New Power announce strategies to scale up manufacturing, although Daqo effectively sold out its inventory for 2022 after signing a long-term supply deal.
Chase stated that polysilicon prices must fall in Q4 of this year as more production capacity comes online.