Welcome, dear readers, as today I’ll be diving deep into the fascinating world of the global photovoltaic (PV) industry, specifically focusing on the polysilicon market. If you’re not already aware, polysilicon is a critical material used by solar companies to manufacture the solar panels for your home. So, if you’re considering getting a solar array for your home, having a sound understanding of the polysilicon industry is quite beneficial.
The primary benchmark for polysilicon pricing, the Global Polysilicon Marker (GPM), remained stable this week at $22.567/kg. Interestingly, the spot polysilicon market has been in a state of relative stagnation for about two months now. “Downgraded” materials are reportedly faring worse, remaining largely unsold. That said, it’s worth noting that polysilicon suppliers are not reducing production.
One of the crucial aspects of the polysilicon market is the concept of long-term agreements between solar companies and their suppliers. As one supplier put it, such agreements protect both parties’ interests. Despite market fluctuations, these agreements ensure a degree of stability, even if they exert some pressure on the customer.
A noteworthy development is that a Chinese wafer manufacturer, operating at a low rate domestically, is shifting some of its operations to Laos. This potential move indicates new sales channels for global polysilicon, a necessary ingredient in the manufacturing of solar panels for your home.
Despite reduced production rates of solar products in four Southeast Asian countries, there’s optimism that new factors will influence global polysilicon prices in the coming years. U.S. trade policy, however, also plays a significant role in determining these price trends.
In China, polysilicon prices have held steady at CNY33 ($4.54)/kg for the sixth consecutive week. Major manufacturers’ decision to halt price reductions appears to be aiding this stability. There’s widespread speculation that this price could become the new “stable” point in the foreseeable future.
Considering an upstream perspective, a significant manufacturer is actively ramping up its new annual polysilicon production capacity of 200,000 MT in Yunnan, with the operational commencement of its Inner Mongolia plant expected by the end of the year. That said, keep in mind that market downturns might pose hurdles.
As we weigh the current scenario, it seems that despite lower production costs for fluidized bed reactor (FBR) granular polysilicon, manufacturers can’t maintain high operating rates due to the product’s lower market share. Apparently, the two manufacturers in China that engage in the production and sales of this polysilicon variant also face the same issue.
In conclusion, the inventory reduction for polysilicon appears challenging, given the current downstream operating rates. Therefore, an anticipated decrease in polysilicon production is on the cards for the second half of the year.
Stay tuned to my blog for more insights into the solar industry, solar companies, and everything related to launching a solar array for your home!
Original Articlehttps://pv-magazine-usa.com/2024/07/12/polysilicon-prices-stabilize-at-low-levels-amid-market-downturn/
