Polysilicon prices have experienced eight consecutive declines, leading to a widening price gap between n-type and p-type materials. The China Nonferrous Metals Industry Association Silicon Division on Wednesday released the latest transaction prices for solar-grade polysilicon.

Source: Silicon Division. Chart: Solarbe Global

While the cost of n-type material remained relatively stable this week, the prices for p-type material continued to decline, indicating an overall downward trend. As a result, the price gap between n-type and p-type products has widened in the upstream sectors.

According to Solarbe analysts, the increasing demand proportion for n-type modules in the market has contributed to the stability in both the price and demand for n-type polysilicon. This trend has encouraged polysilicon producers to improve the proportion of n-type material in production.

In fact, the production ratio of n-type material has already exceeded 60% in some large factories.

On the other hand, the demand for lower-quality polysilicon continues to drop, leading to a decline in market prices that may even fall below the production costs of certain manufacturers. There have been reports of a polysilicon producer in Inner Mongolia temporarily ceasing production.

Although this does not greatly affect the supply of polysilicon in December, it serves as a warning to related companies about new production capacity and technological upgrades.

Data from China’s National Energy Administration reveals that from January to November, the country’s newly installed solar power capacity reached an impressive 163.88 GW, representing a remarkable 149.4% increase compared to the same period last year.

In November alone, the newly installed capacity reached 21.32 GW, on par with the monthly level in previous Decembers.

This suggests that the rush to install solar power by the end of 2023 has already begun, resulting in increased market demand and some support for prices in various sectors of the industrial chain.

Based on information collected by Solarbe, the prices for silicon wafers and cells have remained relatively stable, reducing the price difference caused by size variation.

However, the price of p-type modules continues to decline as the impact of supply and demand on prices becomes more significant than cost factors.

In terms of bids and tenders, there have been multiple instances of mixed bidding for n-type and p-type modules in China, with n-type generally accounting for over 50%. This is closely related to the narrowing of the n-p price spread.

Looking ahead, as the demand for p-type cells and modules decreases and overcapacity intensifies, market prices may continue to fall, surpassing cost limitations and affecting upstream prices.

（Picture: Veer）