Solar EPCC Companies Rose On The Back Of Weakening Polysilicon Prices

Worldwide polysilicon prices plunged over 70% from its peak of USD28.76 per kg this year. Data from Bloomberg shows the average photovoltaic (PV) grade polysilicon spot price formed a sharp fall since February this year to a low of USD7.72 per kg, representing a 337% discount from 2022 average price of USD33.73 per kg. The downward pricing trend was attributed to the large-scale capacity expansion in China which came into production, causing oversupply in the market. Secondary sources pointed that China’s polysilicon manufacturers have seen their inventory increased to a month’s worth of production. It is also estimated that China’s polysilicon production would reach 1.25 million tonnes this year, exceeding the estimated global module demand of 320-350 gigawatts. While it is reported that some polysilicon producers have suspended production for maintenance due to market factors, the Silicon Industry Association believes that the oversupply condition is likely to persist in the short term.