Solar Sector Hit By 25% Rise In Cost Of Polysilicon

The price of polysilicon has been on the rise for the past seven years, and recently prices have reached an all-time high of $400/kg, according to a new report. The rising price is largely due to a supply imbalance, which is expected to ease slightly next year and more in 2010 because of new capacity coming online, researches say. In the short term those rising prices could trigger higher manufacturing costs for Chinese solar wafer makers that have been signing many supply deals over the last year. Market demand is coming from the USA; Germany; Japan; Korea and Spain. From 2006 to 2007, the cost per kilogram of polysilicon rose 33% from $200 to $300 and recently hit $400 per kilogram.