Upstream Spot Price Rises, Market Outlook Remains Unclear for 2012

published: 2011-12-29 11:10 | editor: | category: Price Trend

According to EnergyTrend, TrendForce’s green energy research division, there is a division among current spot market price trends – solar cell and module prices have ceased falling and stabilized, while polysilicon and Si wafer prices are showing signs of an uptrend. As for the contract price trend in 2012, there has been talk of polysilicon and Si wafer price increases, but currently buyers and vendors are not seeing eye to eye on the matter. Related manufacturers indicate the market trend for 2012 is unclear, which does not generally favor price increases. Therefore, EnergyTrend believes it is unlikely that contract price will see an increase in 2012.

This week’s polysilicon price increased significantly. EnergyTrend believes that the wide range is attributable to the gradual increase of high efficiency Si wafer demand, which has pulled polysilicon price up as well. On the other hand, with clients demanding higher quality, some polysilicon makers are unable to provide clients with products that fulfill their requirements, and can only target the standard market by offering lower prices.

This week’s Si wafer price also saw a slight increase. According to EnergyTrend research, currently downstream solar cell clients are focusing on proprietary high efficiency products. Some top-tier makers are even focusing all product planning for 2012 on high efficiency products. Furthermore, as some Si wafer manufacturers as unable to increase high efficiency product capacity and the yield rate, high efficiency products and standard products currently have a price gap of approximately US$0.2/piece. The high efficiency wafer demand increase is the cause of this week’s slight price increases.

As for contract price, vendors are slightly more straightforward. Currently, a major manufacturer located in Asia has quoted a price of approximately US$30/kg for polysilicon price in 2012. In terms of Si wafers, related vendors indicate that the target average contract price for 2012 will be US$1.2/piece. This represents a price gap of 10% - 20% between standard and high efficiency products. As for buyers, related vendors indicate that the European market price has not improved, inventory has not yet been cleared, and cost has not been transferred to the client-end. Thus, the overall situation is not conducive to a price increase.

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