Update | China’ GCL Poly Energy sees rebound in polysilicon prices on higher demand

China’s GCL Poly Energy, the world’s largest maker of polysilicon, the raw material for solar power panels and silicon wafers, expects prices to recover  in the second half as demand picks up and a ban on “processed” polysilicon imports  comes into effect.

“The price falls in polysilicon so far this year are primarily because of weaker seasonal demand that is typical of the first quarter, but as all imports through the processing trade will be banned in a few months, we believe prices should start to rebound in July,” executive president Zhu Zhanjun said Friday after the company’s annual shareholders meeting.  

The Jiangsu province-based company posted a 11.7 per cent year-on-year decline in the average selling price of its polysilicon in the first quarter to US$19.14 per kilogram, while that of solar wafers dropped 13 per cent to 20 US cents per watt.

Since the beginning of the year, polysilicon prices have fallen 17 per cent and that of wafers have declined 7 per cent, Jefferies Securities’ analyst Joseph Fong said in a note last month, citing information from industry data provider PVinsight.

“We expect polysilicon to experience a slight recovery in the second half, driven by a seasonal demand pick-up and as the last batch of polysilicon imports approved last year expires, but a recovery will likely be limited,” he wrote.

He forecast that the average price of polysilicon would fall 21 per cent this year from last year and that of wafers would drop 7 per cent.

China’s Ministry of Commerce last August issued an order to suspend from September this year the import of polysilicon under a loophole  which permitted duty-free imports of polysilicon from the United States, European Union and South Korea under the “processing trade” rules.