Prices fell more than 40% over the course of a few weeks starting in December and then rebounded more than 50% in less than a month.
“The solar value chain has undergone one of the most volatile two months in history, with major product prices bumping up and down by wide margins,” said Tony Fei, an analyst with BOCI Research Ltd.Polysilicon prices began falling towards the end of last year as new plants came online. The ups and downs so far haven’t had an impact on overall solar demand, which grew by a record amount last year that is expected to be eclipsed this year.
Just in the past few weeks, top wafer manufacturers Longi Green Energy Technology Co and TCL Zhonghuan Renewable Energy Technology Co raised prices by nearly 20% in response to the rebounding cost of polysilicon.“Volatility is expected to continue in the coming months as polysilicon producers and their clients who manufacture wafers compete to gain an advantage in a declining price environment,” said Alex Whitworth, a research director at consultancy Wood Mackenzie Ltd.