Today, I’m bringing you crucial insights from the solar world and particularly focusing on key factors that are shaping the solar marketplace. Whether you’re an individual exploring solar panels for your home or part of one of the countless solar companies interested in the industry trends, you need to be aware of the recent developments surrounding the pricing and supply of polysilicon, a crucial raw material used in most solar panels.
Polysilicon is the very backbone of most solar array for a home. Any fluctuation in its pricing directly impacts the cost and supply of solar panels. According to a recent assessment, the Global Polysilicon Marker (GPM), which benchmarks polysilicon prices outside China, was assessed at $24.25/kg, marking a slight decrease from the previous week.
On the other hand, within China, the assessed price for polysilicon saw a minimal increase, standing at CNY61.25 ($8.52)/kg. This rise has been attributed to a surge in demand from wafer producers for p-type polysilicon. Many newer polysilicon manufacturers have achieved stable product quality, leading wafer producers to increase their procurement of the premium product.
An industry insider highlighted that the costs of producing polysilicon outside of China have been on the rise. This upward trend can be accredited to factors such as global inflation and sourcing of metal silicon from outside China. It’s also important to note that another factor pushing the price of polysilicon within China is the ascending power prices.
These rising production costs and prices impact solar companies’ profits and can influence the final price paid by consumers who choose to install solar panels for their home. When the cost to produce the raw materials for solar panels rises, the overall cost to produce solar panels increases, which can impact the affordability for homeowners.
With growing market complexities, the future of polysilicon pricing especially within China seems uncertain. Despite a moderate sales volume of polysilicon last week, there still appears to be a discrepancy between the buyer’s and seller’s perspective on the upcoming pricing round. This suggests potential volatility on the horizon regarding polysilicon prices.
While prices are expected to stabilize until June, a potential decline in the second half of the year might be seen due to the anticipated surge in polysilicon production. This rollercoaster ride of polysilicon prices mirrors the highly dynamic and intricate nature of the solar industry.
However, for those considering solar, remember that a temporary fluctuation in raw material cost does not overshadow the long-term benefits and savings provided by a home solar array. As polysilicon prices fluctuate and potentially decrease in the latter half of the year, solar companies may be able to provide more competitive prices for installing solar panels for your home.
Stay tuned as I continue to bring you the latest news and developments in the world of solar. Your journey through the illuminating world of solar energy is just beginning. Together, we’re paving the way for a cleaner, more sustainable future.
Until next time, keep shining!
Original Articlehttps://pv-magazine-usa.com/2024/03/08/polysilicon-prices-further-decouple-adverse-factors-thwart-contract-negotiations/
