Polysilicon prices started February sharply higher on Wednesday, extending the gain before Lunar New Year, boosted by the continued wafer price rally to drive up polysilicon demand and positive signs of wafer production growth in China. Mono-grade polysilicon prices rose on the first trading day of February as players digested mono-crystalline wafer gains after Chinese New Year and hoped more wafer production driving strong demand this month. Players looked past surging downstream cost tensions in China and took cues from continued chase buying, which edged up following aggressive wafer production expansion in China.

Polysilicon prices started February sharply higher on Wednesday, extending the gain before Lunar New Year, boosted by the continued wafer price rally to drive up polysilicon demand and positive signs of wafer production growth in China. Mono-grade polysilicon prices rose on the first trading day of February as players digested mono-crystalline wafer gains after Chinese New Year and hoped more wafer production driving strong demand this month. Players looked past surging downstream cost tensions in China and took cues from continued chase buying, which edged up following aggressive wafer production expansion in China.

Mono-crystalline wafer prices rose this week as low wafer supply supported the pricing and on expectations that wafer inventories fell in China due to the strategic production reductions from Chinese wafer makers last month while rising numbers of cell production expansion cases enhanced wafer purchasing activities and triggered the confidence of demand growth. On the other hand, market players remained cautious as the recent closeout buying from Chinese buyers wasn't backed by the actual shortage but by production reductions since the rising wafer production utilization rates imply the risk of an oversupply.
Mono-crystalline PERC cells prices were on the course of the best week in two months on Wednesday, following gains in mono-crystalline wafer prices, with prices of 182mm jumping on hopes that global wafer supply cap the cell production growth in the short term. Prices were following the revised rising quotes from the Chinese producers as market sentiment rebounded in the wake of cell production constraints, easing the threat of a potential glut.
Mono-crystalline PERC module prices slumped on Wednesday, with the China benchmark in the bear market territory, as a plunge in n-mono-crystalline module prices and an expanding capacity of n-mono-crystalline modules amplified fears of a global contraction on mono-crystalline PERC module market share, dwindling demand growth globally because the potential price correction disrupted solar module purchasing activities and solar project development movement. N-mono-crystalline module prices dropped this week following the price correction of mono-crystalline PERC modules after new entrants were flooding the international solar module market with excess supply, generating fresh headwinds for prices.