PV polysilicon and wafer margins to recover in 2013


In its quarterly Polysilicon and Wafer Supply Chain Quarterly Report, NPD Solarbuzz says that average polysilicon prices should be around US$23/kg in 2013, and wafer prices, around $0.24/W.

In a statement, the company wrote, "As prices approach current cash costs of even tier 1 makers, price declines are expected to slow to less than seven percent per year." As such, it believes top tier polysilicon and wafer producers will be able to achieve positive profit margins, although they are unlikely to be above 30 percent, as has previously been seen.

The "less competitive" polysilicon and wafer players are not expected to survive at such low prices, however, Charles Annis, VP at NPD Solarbuzz, says "even at prices $0.25/W, top-tier wafer makers, particularly those with low-cost internal polysilicon supply, are targeting 12 percent or better margins."

The company added that wafer manufacturers are continuing to lower their processing costs, including reducing slurry consumption, kerf loss and electricity consumption, and increasing recycling and conversion efficiency.

The positive news comes on the back of what is expected to be a tough 12 months for the industry. For the full year 2012, NPD Solarbuzz forecasts that prices will fall 48 percent and 56 percent, year on year, for polysilicon and wafers, respectively. "With such severe price declines, only 12 Chinese PV polysilicon manufacturers are still producing, and more than half of these companies are running at significantly reduced utilization rates. Industry-wide, wafering plant utilization is forecast to average only 53 percent in 2012," it said in the statement.

Popular content

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.


Related content

Elsewhere on pv magazine...

Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.