In a new weekly update pv magazineOPIS, a Dow Jones company, provides a quick overview of the most important price trends in the global solar industry.
Ex-China polysilicon prices were flat for the second week in a row, with most players not offering new price points during OPIS’s market survey. Instead, and continuing the pattern from last week, several sources indicated instead that prices in China’s polysilicon market will remain in free fall.
Polyp prices in China, rated China Mono Grade by OPIS, continued to break records and dived even further to 78 yuan ($10.96)/kg, the lowest figure in almost three years, leaving also the hitherto much-discussed, psychologically significant figure. 100 CNY/kg in dust. This 27.44% plunge takes the crown from last week’s already dramatic percentage drop and is now the biggest percentage drop in Chinese polysilicon prices of 2023.
This sharp drop is because the fundamentals of the Chinese market also remain unchanged and polysilicon production continues to exceed demand, as one source reiterated. In reality, deals are 10% lower than the figures reported by large and small fabs, and wafer producers now have a fairly strong bargaining position when placing purchase orders with poly-silicon companies, the source added.
With the exception of a few well-known manufacturers, many polysilicon producers are currently unable to survive at CNY 70-80/kg, and a raw price war is currently in full swing, according to the source. These large producers are expected to continue the price war, using their lower production costs and higher production volumes this year and next year to prevent the market share of smaller and newer players, the source added. In this way, they can maintain their high position in polysilicon when there is significant oversupply in the segment.
OPIS, a Dow Jones company, provides energy prices, news, data and analysis on gasoline, diesel, jet fuel, LPG/natural gas, coal, metals and chemicals, as well as renewable fuels and environmental commodities. It acquired pricing data assets from the Singapore Solar Exchange in 2022 and now publishes the OPIS APAC Solar Weekly report.