Spot market prices for polysilicon have risen to US$20/kg currently and some China-based makers, in view of strong demand in the China market, plan to further hike quotes by 10% to US$22/kg after the Lunar New Year (January 31), according to industry sources in Taiwan.
Strong demand in the China market is mainly because the total capacity of 8GWp for PV systems installed in China in 2013 was short of the target of 10GWp and therefore the China government is likely to extend the effective time for applying for feed-in tariffs until the end of February, the sources pointed out. Thus, strong demand has occurred and will continue in February, the sources indicated.
However, it is still uncertain whether spot market prices for polysilicon can be increased to US$22/kg because solar-grade crystalline silicon wafer, solar cell and PV module makers may not be able to bear the burden, the sources indicated. In addition, the US Department of Commerce has decided to launch anti-dumping and anti-subsidization investigation of China-based makers of PV products and anti-dumping investigation of Taiwan-based solar cell makers, the sources noted. The negative impact is expected to be an excuse for China-based PV makers and Taiwan-based solar cell makers to fight hikes in spot market prices, the sources pointed out.