The end market demand in the solar market has been weak, and the wave of price drops have been moving from downstream to upstream polysilicon. The price of polysilicon this quarter has been falling rapidly. Asia-based polysilicon firms have been reducing quotes to capture the market share. Polysilicon firms from Europe and US are usually more rigid with quotes but have been lowering contract prices to attract customers.

The solar wafer and cell customers have been hit by low demand and price drops causing them to refrain from obtaining more supply of polysilicon materials. The polysilicon firms have been feeling the pressure of inventory backlogs, hence firms have been adjusting negotiation flexibility and contract prices. Industry sources indicated that prices such as US$35/kg for polysilicon should not be far away.

Despite the willingness of Europe- and US-based polysilicon firms to lower contract prices, industry sources stated, there are still many downstream firms waiting for renegotiation of their contracts.

Source:digitimes