Polysilicon prices plunge worldwide on bearish market sentiment

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The Global Polysilicon Marker (GPM), the OPIS benchmark assessment for polysilicon manufactured outside China, plunged for the first time in three weeks in its latest price assessment on May 30 to $32.171/kg following increased market activity brought on by the 16th International Solar Photovoltaics and Smart Energy Conference and Exhibition (SNEC) in Shanghai. The major solar event, saw solar players cut deals and report prices far below prior highs.

The 7.25% decline is the largest percentage drop in GPM so far this year. Most sources, who were contacted at SNEC or in OPIS’ market survey after, put ex-China polysilicon prices at or below the psychologically significant level of $30/kg. A tier-one module maker has agreed to buy polysilicon at $29/kg from a global producer, according to multiple sources.

Another global producer concurred that prices were in this range, but also indicated that it did not make any transactions at SNEC and planned to cut its deals afterward.

China's polysilicon prices, assessed as China Mono Grade by OPIS, continued their resolute march downwards following the SNEC as well. Domestic prices hit their lowest level in four months at 126.67 CNY ($17.7)/kg this week. Market chatter that the already-brisk rate at which domestic prices have been falling would steepen rapidly following the SNEC proved unfounded. China Mono Grade’s approximately 8% drop this week was comparable to the previous week’s roughly 7% drop.

Polysilicon prices in China are expected to drop below 100 CNY/kg very soon, with OPIS anticipating the critical number will be reached as soon as next month. With discussions of this number swirling aggressively at and since SNEC, one source summarized the discourse aptly, saying “Nothing is expected to stop the slide of Chinese poly below 100.”

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