Nuying Huang, Taipei; Jackie Chang

 

There is a chance for polysilicon spot price to drop below US$50/kg in second-half 2011 due to increased supply, but the current price should last until November on steady demand, according to China-based first-tier polysilicon suppliers.

Some market observers have speculated that polysilicon spot price in China might drop to US$40/kg starting September. The suppliers said December is likely to be the month for spot price to drop below US$50/kg, but it is quite unlikely for the price to drop below US$40/kg even with increase in supply.

They said that despite the capacity expansion, demand in China will not decrease due to government subsidy programs facilitating the growth of installations.

Industry sources have estimated China's installations to reach 2GW in 2011 and 4GW in 2012 regardless of the possible downturn of world economy caused by US's debt crisis.