(Bloomberg) -- Polysilicon prices rose for a sixth straight week as plant outages extend a shortage of the material that’s key to making solar panels.
The average cost of the most expensive grade of polysilicon rose 1.9% to 291.6 yuan ($43.50) a kilogram on Wednesday, according to a statement from the China Silicon Industry Association. Prices are at the highest level since late 2011.
The polysilicon market is in an “extreme supply shortage” after a manufacturer in Xinjiang unexpectedly shut for repairs, with other producers outside that region scheduled for routine maintenance in the third quarter, the association said. July output in China is expected to be about 58,000 tons, down 3,200 tons from June.
Prices are expected to keep rising through next month but should begin to ease in August, when newly added factories will more than balance out the capacity shut for maintenance, the association said.
Read more: China’s Solar Industry Reels as Material Cost Nears Decade-High
Polysilicon makers are benefiting from the surge. Top manufacturer Tongwei Co.’s shares hit a record in Shanghai on Tuesday and are up 45% since the start of the year. No. 2 producer GCL Technology Holdings Ltd.’s stock in Hong Kong recently traded at the highest level since 2011.
©2022 Bloomberg L.P.
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