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Polysilicon price could rise in March… slightly

There are indications falling polysilicon production is starting to address the long-standing global oversupply and helping the price of the solar material stabilize, according to consultants IHS i-Suppli.

The price of solar material polysilicon could stabilize, and even rise, in March.

Deutsche Solar

After a string of bearish updates throughout 2012 Henning Wicht, principal analyst, photovoltaics, for IHS i-Suppli Deutschland, said a reduction in the percentage of deals done on the global poly spot market is indicative of supply falling more closely in line with demand.

Respondents to the market research company's monthly polysilicon price tracker are predicting a slight rise in prices towards the end of March although, typically, there is a caveat.

"We have seen the proportion of spot market trades in the transactions we survey fall from around half in April and May to 20% at the moment," explained Wicht.

"This is because suppliers have reduced production but it is too early to say we have hit the bottom, that will depend on how the market reacts if there is a slight rise in prices.

"If bigger suppliers increase production in response to any increase at the end of Q1, in order to aggressively pursue market share, we could see the whole cycle recur."