EN 
PT_BR 
CHINA. In recent days, China's photovoltaic industry is experiencing difficulties due to market demand and recent moves by silicon material manufacturers. Some companies in the sector deliberately created the illusion of a serious shortage of polysilicon and silicon wafers, encouraging intermediaries to accumulate and raise product prices.
Since then, the price of polysilicon has increased by 149% and the price of silicon wafers has increased by 56%, according to Aikosolar, a producer of crystalline silicon solar cells. Preliminary statistics show that industry inventory in April and May increased by 61.8% compared to the end of the first quarter of this year, reaching 68.6 GW.
A few days ago, Aikosolar published an article denouncing the insufficient supply of raw materials, high demand and sharply rising prices for silicon materials. From 2013 to the first half of 2021, the company was in full production and sales. However, since April this year, its operation has fallen by 60%.
ANDn April, some polysilicon supply companies invited companies in the photovoltaic sector to place weekly bids. The highest bid price was used as a reference for the following week, which caused a drastic increase in the price of polysilicon.
The rapid increase in prices prompted global companies to follow suit, leading to a 37.2% increase in the price of polysilicon and 23.5% in the price of silicon wafers.
Due to the change from “monthly prices” to “weekly prices” of products and the accumulation of materials by intermediaries, many companies saw their operations fall violently and had to renegotiate the contract with suppliers before a new adjustment could occur.
During the SNEC 2021, held in Shanghai from June 2 to 4, 2021, representatives of the Chinese photovoltaic industry held meetings to discuss measures to prevent price increases and reached a consensus not to purchase more expensive polysilicon in large quantities. However, they expect the price of the product to fall naturally.
Niu of intermediate products in the second half of the year is considered sufficient.
From the perspective of component manufacturers, especially first-tier companies, their long-term purchase orders will not be accepted at a high level. Furthermore, polysilicon manufacturers still need to determine the appropriate price according to actual demand.
CPIA issues appeal for contracts to be fulfilled
With the rise in the price of polysilicon and silicon wafers and the impacts caused to the photovoltaic industry, mainly due to the reduction in the industry's operations and production, the CPIA (China Photovoltaic Industry Association) published an appeal recommending that All members and photovoltaic companies comply with laws and regulations.
Furthermore, they advise them to operate rationally, respecting the spirit of the contract and resist excessive accumulation of polysilicon and silicon wafer products.
The Chinese association also called for price-increasing behaviors and speculative behaviors that are not in its own production and operation needs to be equally avoided, as well as resisting inappropriate behavior of malicious competition, such as low-cost dumping of components.
With this, it is expected that the price of silicon materials can return to the normal range as quickly as possible and, together, promote the healthy and sustainable development of the industry.
