Polysilicon Prices May Continue To Fall But Power Rationing And Production Cuts May Lead To A Brief Recovery

SMM believes that polysilicon prices may continue to fall. First, in July, it is expected that several new polysilicon production lines will be put into production in China, such as Baofeng, Hoshine, etc. The commissioning speed of new polysilicon production lines will be much faster than that in April and May.

Secondly, in the first half of 2023, the price of domestic industrial silicon continued to fall, down from 23,000 yuan/mt previously to about 14,000 yuan/mt. The continuous price drop of industrial silicon significantly lowered the cost of polysilicon, and this left more room for profit.

However, it is worth noting that with the high temperature in summer and the impact of water levels in Sichuan and other regions, there will be power rationing and production cuts in the future. This, coupled with price hikes of first-tier enterprises, may lead to a brief recovery in polysilicon prices.

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