27 September 2012 05:40 [Source: ICIS news]
By Felicia Loo
On 26 September, spot polysilicon prices were at $16-17/kg (€13-14/tonne) FOB (free on board) NE (northeast)
The bulk of the inventories are sitting in
“Demand is so poor and the inventories are huge. There is a lot of floating material in the spot market,” said a market player.
Spot polysilicon deals were scarce in the bleak solar sector, forcing out many small to medium polysilicon producers in
A number of China-based polysilicon producers had shut their plant operations since October last year and there were no signs of these players resuming operations, they said.
Polysilicon is the solar feedstock, which is used to manufacture mono/multi-crystalline ingots, wafers, solar cells and solar panels
Just one MW (megawatt) of photovoltaic power requires seven tonnes of polysilicon material, which is traded in chunks, rods and granules.
Solar cells and modules makers in
Many solar module manufacturers in
A lack of funding was a factor for the Chinese players that could not sustain their business amid a weak economy, as they were unable to apply for bank financing easily, they added.
“In the past, we could receive 100% payment after one month of delivery. But now, buyers will drag payment for about three months and even after three months, we can’t be certain of receiving the full payment,” said a Chinese polysilicon producer.
Many market participants are adopting a cautious approach after the European Commission started an anti-dumping investigation in early September on China-origin imports of solar panels and their key components – solar cells and wafers, players said.
The move by the European Commission caused the Chinese market to weaken, because Chinese solar panel makers are finding it challenging to sell their products to
The country’s polysilicon exports were at 166 tonnes in August, down by 4% year on year,
The fourth quarter will be a tough period for solar polysilicon producers because of the current supply glut in the market, players said.
($1 = €0.78 / $1 = CNY6.31)
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