Polysilicon prices show signs of rising after the holiday

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According to statistical data, after the Spring Festival, polysilicon prices began to show signs of rising. We believe that as the entry barriers in this industry continue to rise, polysilicon prices are likely to keep climbing. In fact, following the introduction of policies to cut solar photovoltaic subsidies in European countries last year, there were concerns in the market regarding demand for solar photovoltaic products in 2011. But in reality, after countries such as Germany introduced solar panel subsidy policies, demand for solar panels did not decline significantly, and the negative effects of the reduction in these subsidies were less severe than expected. According to data from Photovoltaic Solar Network, a professional information exchange platform for the photovoltaic and solar industry, during the week following the Spring Festival, the price of polysilicon was between 75 and 90 dollars per kilogram; the highest price was about 5 dollars per kilogram higher than it was before the festival, indicating an upward trend in prices. We believe that due to the continued strong demand for polysilicon and the rising barriers to entry in this industry, the supply in the polysilicon market is likely to remain tight in the future, and polysilicon prices may rise again. Regarding photovoltaic modules, as the off-season in the photovoltaic industry comes to an end, prices for these modules have seen a certain increase recently. According to data from Photovoltaic Solar Network, one week after the Spring Festival, the price of polycrystalline silicon modules (230W) was 1.75–1.8 dollars per watt, with the highest prices being about 0.1 dollar per kilogram higher than before the festival. Given that the adjustments to Germany’s photovoltaic subsidy policies have been implemented, a new wave of installation activity is expected in the second quarter, prior to the **reduction in photovoltaic subsidy amounts in 2011. At the same time, the return on investment for photovoltaic systems in Italy remains high, and demand for photovoltaic products in that country will continue to be strong. In addition, the United States, Japan, and other markets are also expected to maintain steady growth. Therefore, we believe that driven by the German and Italian markets, demand for photovoltaic products is likely to recover in the future or exceed expectations.