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  • Meiling Zhou

Polysilicon prices

Polysilicon prices have been rising significantly since February 2021 and reached unprecedented levels over the past four months, with the average selling price peaking in December at $38/kg without VAT. The current polysilicon spot price is $33.87 /kg on 9 March. The global solar industry's supply chain issues that have been triggered by the Covid-19 crisis may continue during 2022 and the expected price drop for polysilicon and solar products may not materialize.

Polysilicon prices are surprisingly high at the moment, despite the fact that polysilicon production in China has increased during the first two months of 2022. The increase in production was a little lower than we had expected, and what we hadn't seen coming is a very high demand for polysilicon that is a little unusual for the first quarter of the year, which traditionally can be a relatively weak quarter for the polysilicon industry. Strong demand and the effect on inflation jointly create a destructive mix in the solar industry.

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