US polysilicon prices stable but still far away from recovery
2009-06-04 09:17:36 【Print】
PITTSBURGH (Asian Metal) 4 Jun 09 - Polysilicon prices remained stable in the US market amid light but steady trading. Active market participants cite current prices at USD55-60/kg and USD75-80/kg for 6N and 11N polysilicon respectively.
One large US-based trader noted it was currently engaged in a deal for 2t of 11N polysilicon at USD75/kg, but he had not yet completed the sale.
“We have not seen any increases so far in price, but there is clearly a stable source of buyers,” the trader commented. “Even if we do not conclude the sale with this buyer, there is someone else waiting to purchase.”
The source was confident, however, that towards the end of the year polysilicon prices would be increasing.
“There have been huge cutbacks in production to adjust to the present demand which is weak compared to 2008 levels. If gas prices keep going up, and subsidies for solar energy are legislated upon, I imagine 11N [polysilicon] would increase to USD150-170/kg by early next year,” the trader speculated.
A small overseas producer of approximately 200kg/m of 6N solar grade polysilicon who distributes domestically in the US market indicated current prices at approximately USD55/kg. The source maintains a minimal level of production and instead operates from an existing stock in the US.
“Polysilicon prices can not go any lower than they are now. The variable cost of production is just barely under current market price,” the producer explained. “There is no one that would sell below USD50/kg.”
A small US trader of 100-150kg/m of 11N polysilicon cited prices at approximately USD80/kg, but has only distributed 40kg in the last month.
“I have a few buyers who typically purchase small quantities from me,” the source explained. “I cannot imagine demand or pricing increasing until Q4 2009, but I would agree the market has bottomed out.”
