Polysilicon prices continue to drop for the eighth consecutive week, with the lowest price reaching CNY 170/kg. The latest prices were announced by the China’s Silicon Industry Branch on April 26, and they indicate that the average price for solar-grade polysilicon has fallen by around 5% over the past week.

The prices for various types of polysilicon have dropped by CNY 5-6 per kilogram since the previous report, with some seeing a decline of up to CNY 9/kg. As production capacity continues to increase and supply becomes more abundant, analysts predict that prices may further decrease in the coming weeks.

It is predicted that the average transaction price will fall below CNY 140/kg at the end of the second quarter.

Despite the drop in prices, there has been no limit on electricity usage for polysilicon and ingot production, and the operating rates remain relatively high, providing support to downstream demand for installation.

In fact, the data on electricity industry operation from January to March released by the National Energy Administration of China has boossted industry morale, and experts are optimistic about market demand for 2023, with some predicting that China’s installed capacity of solar power may reach 150 GW this year.

While prices for silicon wafers have also decreased due to upstream factors, such as increased quartz sand production, G12 large-format wafers and cells remain in relative scarcity, with only minor price reductions.

Furthermore, competition among solar power companies is driving down module prices, with some brands already accepting prices below CNY 1.63 per watt in bulk negotiations with state-owned enterprises, although distributed prices remain above CNY 1.65 per watt.