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Polysilicon price decline narrows as demand restores

This week, the transaction prices of polysilicon have continued the downward trend, but the decline has narrowed down with restored demand from wafer manufacturers.

Polysilicon price decline narrows as demand restores | Solarbe Global

The average price of the highest-grade polysilicon has dropped to RMB 161.6/kg, down by 9.32% from the previous week. The lowest transaction price has hit RMB 125/kg, according to the Silicon Branch of China Nonferrous Metals Industry Association.

Since November, polysilicon prices have plummeted by 42.4% from the peak price of RMB 306/kg. This can be mainly attributed to the low demand from downstream sectors.

For weeks, the number of polysilicon buyers has reduced to only two to four. This week, demand has recovered as more buyers have launched order procedures. The number of companies that signed new polysilicon orders has increased to over seven.

According to manufacturers’ production plans, the output of polysilicon in China is projected to rise by 5% in January. Meanwhile, wafer producers are expected to increase their operating rate by an average of 10%. This means the supply increment of polysilicon will fall short of the demand increment.

However, the overall excessive supply of polysilicon has seen no sign of change. Polysilicon manufacturers are running at full capacity, while wafer producers are yet to resume their regular operating rate.

In the coming weeks, the Silicon Branch expects stabilizing prices of polysilicon. With the fall of polysilicon prices and the expansion of the wafer’s profit margin, wafer manufacturers may gradually resume their normal operation and replenish stock, supporting the stabilization of polysilicon quotes.

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