China's polysilicon price to fall with capacity expansion

China's polysilicon price to fall with capacity expansion

Asia Pulse Pte Ltd (2008/9/25)

BEIJING, Sept 25 Asia Pulse - Price of polysilicon, a core material for photovoltaic industry, is expected to decline this year with the expanded production capacity to be released, according to Pingan Securities.

The price of polysilicon has kept on rising in recent year as the supply of polysilicon cannot meet the demand of the expanding solar cell industry. The price have been driven up from 10 to US$20/kg in 2002 to US$450/kg recently.

Polysilicon projects in China have mushroomed in various parts of China.

China plans to build polysilicon facilities with combined production capacity amounting to 88,000 tons, including 44,000-ton production capacity are now under construction.

Analysts from Greatwall Securities predicted that the output of polysilicon in China would arrive at 4,000 tons, 10,000 tons and 30,000 tons in 2008, 2009 and 2010, respectively.

The supply of polysilicon would increase since 2009, thus driving its price down.

According to prediction of Photon International, photovoltaic industry will maintain the increase rate of 30 per cent to 40 per cent in the next five years. The cost for this industry is expected to decline in line with its expansion.

Analysts with Pingan Securities held that polysilicon's price would decline to US$100/kg considering the profit limitation from the photovoltaic industry.