In its latest report on the polysilicon industry, IHS iSuppli (El Segundo, California, U.S.) argues that Tier 1 polysilicon suppliers should reduce production in order to stabilize the market.

"PV Polysilicon Price Tracker Report" finds that the decline in polysilicon prices has accelerated in August 2012 from July 2012. However, IHS iSuppli anticipates a potential stabilization of prices in September and October 2012.

"Oversupply remains the dominant trend impacting the PV polysilicon market," said IHS Director for PV Advanced Products Dr. Henning Wicht. "The glut has caused pricing to drop precipitously, impacting profitability for polysilicon suppliers."

"Pricing also has been impacted by a number of related factors, including a sharp decrease in demand for solar module shipments in August, high module-channel inventory in Europe and the United States, and the possible implications of the Chinese anti-dumping tariff against international players."

Contract price for 9N polysilicon falls to USD 27.80 per kg

IHS iSuppli finds that the contract price of 9N polysilicon fell to USD 27.80 per kilogram in August, with 9N spot-market prices falling to USD 21.90 per kg. The company reports that production rates remain high, and that resold polysilicon continues to be in plentiful supply.

The company argues that if Tier 1 suppliers maintain high utilization levels, polysilicon oversupply will continue for the next 12 months.

Danger to market and prices from trade actions

IHS iSuppli also warns that the impending trade war with China creates an air of uncertainty which may frighten away some buyers, and notes that if these pressures continue, September and October 2012 could see weak demand.

Finally, the company states that potential punitive Chinese tariffs against U.S. and Korean polysilicon makers could cause an acceleration in price declines, as Chinese companies are the largest buyers of polysilicon.

2012-09-17 | Courtesy: IHS iSuppli; image: Wacker Chemie | solarserver.com © Heindl Server GmbH

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