Polysilicon prices skyrocketed amid the active chase-buying this week, fueled by tight supply caused by production curtailments of some factories in Xinjiang and major polysilicon production hubs starting fresh rounds of annual maintenance, while mono-grade polysilicon prices soared to the benchmark of CNY 300, over a decade high.

Polysilicon prices skyrocketed amid the active chase-buying this week, fueled by tight supply caused by production curtailments of some factories in Xinjiang and major polysilicon production hubs starting fresh rounds of annual maintenance, while mono-grade polysilicon prices soared to the benchmark of CNY 300, over a decade high. China mono-grade polysilicon prices increased solidly in July, leading to the biggest monthly gain in 4 months, suggesting that the current hefty prices are likely to persist for a while as the unrelenting wafer capacity expansion in China continues to escalate demand growth, as attractive profitability of wafer business pushed wafer makers to snap up uncontracted polysilicon to ramp up their production.

Mono-crystalline wafer stood still on Wednesday, as demand was capped by concerns about downstream solar cell production curb of the largest supplier amid the fresh rounds of power restrictions in Southwestern providences, while players also awaited the further electricity restriction decisions by the local governments and the central government step-in to intervene address to these issues. Mono-crystalline wafer demand clawed back this week after optimism over China hot season in early July, while it now faced many challenges, including regional electricity constraints, strong wafer capacity expansion, competition from new entrants, shortage of polysilicon, and the lofty polysilicon.

Mono-crystalline PERC cell prices rose and were hovering close to a four-year high on Wednesday, helped by a subdued supply resulting from the production reduction of the largest supplier amid local power restrictions, while suppliers awaited solar module pricing from the July deal meetings for more clarity on price policy going forward. Mono-crystalline PERC cell demand sustained, as the sentiment remained bullish on a hotter demand outlook and uncertainty over supply amid local power restrictions.

Mono-crystalline PERC module prices struggled for direction in thin trading this week, flipping between small gains and losses as market players monitored the data in China for further indications of the damage to the market amid the current unaffordable pricing. The spike in silicon materials led to renewed fears about module prices accelerating even further than current forecasts are implying, with knock-on implications to the amount of solar investment for solar project developers over the coming months. Worries about market growth and soaring silicon materials continued to dominate solar module market mood, with European investors now looking to the coming summer slow season for signs on how Chinese suppliers are faring amid costs and weakening consumer confidence.