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.
Polyp prices vary widely between different global producers; One producer claimed to be discussing prices of just over $25/kg with his customers, but no agreement has yet been reached on this price. Another global supplier continues to offer pricing in the $35-$36/kg range. A source confirmed this week that the Chinese companies are jointly negotiating with the latter producer.
China Mono Grade, OPIS’ estimate for polysilicon produced in China, is near the floor, falling another 2.36% weekly to CNY62 ($8.54)/kg, the lowest in nearly three years. Prices are approaching the 60 CNY/kg mark, which is generally accepted as the production cost of polysilicon, indicating that there is no more room for a steep decline. As a result, China Mono Grade’s percentage decline fell into single digits for the first time this month.
Concerns about oversupply continue to be the main theme of China’s polysilicon story, and several contacts agreed. One source estimates that China’s Tier 1 manufacturers are now using about 80,000 tons of the material, while another estimates China’s total polysilicon inventories at more than 100,000 tons.
However, one source noted that new production capacity, which was supposed to be released in June, has been delayed. The insider said it is better to “delay production and stay on the sidelines” because these facilities have significant manufacturing costs and will incur losses if they produce polysilicon in the current low-cost market.
There has been a quiet glimmer in downstream business as China Mono Grade pricing has decreased this week. Disc prices have also stabilized for the first time after more than two months of decline. The Chinese Module Marker, the OPIS benchmark estimate for modules from China, was steady this week at $0.173 per watt after four weeks of price declines. In the future, OPIS believes that production costs in the supply chain will no longer be the determining factor in pricing, and the resulting changes in demand will significantly affect the prices of each manufacturing segment.
OPIS, a Dow Jones company, provides energy prices, news, data and analysis on gasoline, diesel, jet fuel, LPG/NGL, 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.
