China polysilicon prices fall 51.8% year-on-year amid supply glut

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China Mono Grade, the OPIS benchmark assessment for polysilicon prices in the country, fell to CNY60.25 ($8.40)/kg) on Jan.16, down 51.8% year-on-year amid a growing supply glut.

Overall market sentiment remained bearish with many market participants expecting further price cuts ahead of the Lunar New Year festivities in early February. Polysilicon prices were in the range of CNY54-65/kg, OPIS learnt during its weekly market survey.

China produced a total of 1.45 million tons of polysilicon in 2023, up 81.4% year-on-year, data from China’s Silicon Industry Association showed. Current inventory levels stood at 60,000 MT and January’s production is expected to reach 170,000 MT, according to China’s Silicon Industry Association.

Market participants do not expect these inventories to be depleted soon as some companies had already procured January and early February cargoes and said that there was room for prices to fall further in the coming weeks.

The recent increase in wafer prices, stemming from wafer manufacturers trying to recoup previous months’ losses, is not expected to lend any support to polysilicon price gains as wafer demand has yet to recover fully.

Meanwhile, the Global Polysilicon Marker (GPM), the OPIS benchmark for polysilicon outside China was assessed at $26.063/kg on Jan.16, down 30.7% year-on-year tracking price declines in the Chinese market, OPIS data showed.

OPIS, a Dow Jones company, provides energy prices, news, data, and analysis on gasoline, diesel, jet fuel, LPG/NGL, coal, metals, and chemicals, as well as renewable fuels and environmental commodities. It acquired pricing data assets from Singapore Solar Exchange in 2022 and now publishes the OPIS APAC Solar Weekly Report.

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