International spot quotes for upgraded metallurgical-grade (UMG) silicon, which has been considered to be a candidate to replace solar-grade polycrystalline silicon (poly-Si), have been dropping sharply, from US$100/kg in 2008 to US$50/kg in the first quarter of 2009 and further to US$30/kg currently, according to industry sources in Taiwan.
When poly-Si was in short supply in 2008, a few makers mixed UMG silicon with poly-Si in their solar cell production, the sources said. But global demand for poly-Si has been drastically falling and production of UMG silicon remains unstable in terms of purity, resulting in the sharp drops in UMG silicon prices, the sourecs indicated.
Article translated by Adam Hwang