SHANGHAI, Jan 5 - SMM data showed that the domestic polysilicon prices extended its downward trend since November. The lowest polysilicon prices in the market have dropped to 130-160 yuan/kg, and the average market price was about 142.5-167.5 yuan/kg.

Compared with the weekly average price of last week (December 26-30), the prices of recharging polysilicon and dense polysilicon lost 25.98% and 25.50% respectively this week.

The China Silicon Industry Association pointed out the transactions in polysilicon market were still scarce. Most of the top-tier upstream and downstream enterprises are in a wait-ad-see mood. Amid the choppy price movement in the industry chain, end users held back from placing orders, even as the prices kept falling.

The China Silicon Industry Association attributes the polysilicon price downturn to falling demand and growing supply.

However, the China Silicon Industry Association pointed out that the inventory of silicon wafers has been exhausted this week, and the price of silicon wafers has basically bottomed out, hence the prices in the industry chain may gradually stabilise.

As the prices in the industry chain stabilise, overseas and domestic photovoltaic projects will also be gradually launched in Q1. Trading activity in polysilicon market may pick up, driven by stocking ahead of the Chinese New Year, which will allow backlogged inventory to be gradually digested. As such, polysilicon prices are likely to fall at a slower pace before stabilising in Q1.