Aug 21 2010
Frbiz.com, one of China's leading B2B search platforms, analyzes the polysilicon market.
In the second half of the year, the international price of polysilicon rose sharply. A number of listed companies have benefited from the rise in price. As downstream solar cell component demands soar, polysilicon material and products are in short supply. Prices have continued to rise. According to relevant statistics, the price of silicon has risen 30% since May.
In China's domestic market polysilicon prices have also risen and some downstream polysilicon PV module manufacturers cannot obtain a stable supply. Early this year, the polysilicon market was still a buyer's market, now it has transformed into a seller's market.
Polysilicon shortages and rising prices have helped some listed companies profit. The causes for the rise in price may have several reasons, but the photovoltaics market demand has exceeded all expectations, and China's domestic polysilicon production capacity is lower than expected. This, coupled with market speculation, is the main reason for this round of polysilicon prices rising.
The rise in polysilicon prices will not last too long, and shouldn't create an adverse affect on the market in general. Prices will stabilize in future and upstream silicon material enterprise profitability should be enhanced.