The spot price of polysilicon in Greater China continues to increase. Many small- and medium-size polysilicon firms suspended operations when the price was falling rapidly in 2011. Hence the current polysilicon supply is not enough to meet demand, said Digitimes Research analyst Chihheng Liang. The shortage has been pushing up the spot price of polysilicon for the past three weeks.

Demand from the US and India markets has been returning since the end of 2011, added Liang. In addition, some China-based solar firms hope to ship solar modules to the US before the US government announces any results from the anti-dumping and anti-subsidy probe. In January, however, the growing demand has been coming mainly from Europe markets such as Germany and Italy.

Firms of all sizes along the supply chain are generally optimistic. Liang stated that even small-size solar firms have been operating at full capacity. But shortages will remain for a while. Many firms suspended production when demand was nowhere to be found in 2011 and it will take some time to reboot production.

But not all firms in the supply chain have managed to increase their prices, concluded Liang.

Source: Digitimes Research, January 2012

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