Many China-based polysilicon makers which have temporarily stopped production plan to resume when prices rise from US$28/kg currently to US$47/kg, but leading China-based makers indicated that polysilicon prices may hit US$30/kg at most because there is still global oversupply. According to China-based media reports, there are 48 makers of polysilicon in China but only eight are currently maintaining production.

Some industry sources in China believe that polysilicon prices will jump to US$40-50/kg in 2012. China-based polysilicon firms have a different view. The current price of US$28/kg has been steady for a while now, but when demand shrinks in second-quarter 2012, the price will experience fluctuations again.

The price of polysilicon has not been increasing significantly by this wave of demand, added industry sources. The oversupply problem continues to exist and large solar markets such as Germany and Italy are both planning to make further incentive cuts. This will only push the prices down.

Some tier-one polysilicon firms have been reluctant to increase prices hoping less competitive firms will naturally exit the market.

Source:digitimes