Following the polycrystalline silicon solar wafer spot prices began to rebound

The prices of polysilicon and solar silicon wafers rose slightly last week, mainly due to the temporary ease of pressure from inventory clearance and the strategic rise in polysilicon prices to avoid the possibility of anti-dumping investigations. However, downstream demand did not show the expected year-end recovery. Spot solar cells and wafers have kept rising in the past two weeks.

In terms of upstream materials, according to Bloomberg New Energy Finance data, polysilicon prices rose 3% last week, the biggest increase in eight months. Polysilicon spot prices have risen strategically as expected, rebounding to $30/kg. Anti-dumping lawsuits, both in China and the United States, have further aggravated the solar photovoltaic industry, which has already been cut by many domestic subsidies, and brought another negative disturbance to the industry. As the inventory gradually emptied, the spot price of solar wafers rose slightly, and Asian wafer makers were more resolute in their spot prices. Silicon wafer buyers, battery manufacturers, are still unable to buy from the spot market to produce more panels. The sluggish demand for such downstream buyers may not keep polysilicon spot price rising for a long time. According to reports, most battery manufacturers in China, Japan, and South Korea have expressed their reservations about the rising prices of solar wafers.

In terms of downstream materials, the lack of interest in solar cell modules will continue. The pressure of low PV demand will continue to plague solar cell and component manufacturers. The bad weather and subsidies cuts still add to the burden on the photovoltaic industry in the short term. It may not be possible to see continued price increases in the near term. Looking ahead to 2012, companies with the lowest silicon costs will beat their peers.