The Polysilicon Production Predicament

Image Credit: venturebeat.com

Within a week after the Chinese New Year, the price of polysilicon material rose from US$75 to US$90 per kilogram. It is US$5 higher than the end of last year. One manager of a polysilicon company said on February 20th, the polysilicon spot price was over US$114 dollars per kilogram. The price of polycrystalline silicon solar energy cell (230W) is from  US$1.75 to  US$1.8 dollars per Watt and also higher than last month.

The main reason for the price rise is the supply/demand relation. According to statistical data of 2010 from Ping An Securities, the demand of polysilicon is 70,000 tons, but the supply is only 46,000 tons. Custom figures show that China imported 42,000 tons of polysilicon in the first eleven months of 2010. On the other hand, Polysilicon Industrial Access Conditions regulation introduced by the government raised the environmental standard of the polysilicon industry. It will also reduce the production of polysilicon and the price will continue to rise.

Further Reading: Solarzoom

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