SILICON OVERSUPPLY, LOW SOLAR PRICES

Polysilicon Prices Up for Now, but New Low Cost Plants May Reverse the Trend

Charles Annis, May 16, 2014 (SolarBuzz)

“Driven mainly by expectations of strong end-market demand growth this year, polysilicon spot prices increased significantly in Q1’14, up 15% Q/Q and 28% Y/Y. In Q2’14, spot prices are expected to remain relatively flat – or to decline moderately – as more polysilicon makers ramp-up production, in an effort to take advantage of the current price environment…[P]olysilicon makers are feeling more confident that they can build new, highly efficient plants that may be able to produce low cost polysilicon and enable satisfactory returns…Despite all the turmoil in the PV industry over the past couple of years (including the dramatic drop in polysilicon prices), NPD Solarbuzz is now forecasting that more than 260,000MT of new polysilicon capacity is likely to be added through 2018…The polysilicon industry is again in danger of perpetuating a state of chronic excessive capacity for several more years and once more pushing prices lower…” click here for more

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