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Polysilicon price hits $39.3/kg — highest since 2011 – pv magazine USA

The global solar industry’s supply chain issues that were triggered by the Covid-19 crisis may continue into 2022 and the expected decline in polysilicon and solar product prices may not materialize.

At least that is the perspective of Chinese solar module manufacturer JinkoSolar, which in a statement to photo magazine said polysilicon and international freight costs could remain high for a few years before normalizing again.

“The latest announced price of solar-grade polysilicon jumped 10% month-on-month on Tuesday, February 15, standing at 249RMB/kg (US$39.3/kg), the highest since 2011,” said the manufacturer. “That’s up over 400% since the start of June 2020 and growing 280% year-on-year. It’s contrary to most predictions that polysilicon costs will decline in 2022.”

According to the panel maker, polysilicon producers currently earn very high margins, which makes them reluctant to cut prices. “The sustained shortage gives polysilicon makers a renewed excuse to keep the price high, and the solar module price environment is continuously jittery after China’s Spring Festival,” he explained. “Strong demand and the effect on inflation are jointly creating a destructive mix in the solar industry.”

The company also says the current polysilicon shortage will cause module makers to reduce silicon consumption per wattage and seek to increase efficiency, in an effort to further reduce costs. “Adopting more powerful and efficient technology and products may be the only possible way for downstream project developers as well as cell/module producers to manage the risk of fluctuating logistics prices and raw materials,” he pointed out, noting that efficiencies above 22% can become crucial for achieving economies of scale and reasonable LCOE in large-scale projects.

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