A top producer of silicon metal in China has ordered a slash in production amid power woes bringing solar panel costs higher, Bloomberg reported.
The recent production slash could impact the global supply chain, which has already been hit by geopolitics between the United States and China due to supposed labor issues in the Xinjiang region.
The latest developments are likely to push solar panels higher, as researchers believe polysilicon makers will use these as an excuse to boost prices, with the environment very nervous at the moment.
Solar-grade polysilicon prices surged 13% to $32.62 per kilogram on Wednesday, marking the highest in 10 years since 2011, and prices have gone up 400% since June 2020 due to the increased demand.
Analysts see solar panel prices are expected to increase by 28 US cents per watt to as much as 2 yuan to bring levels back to mid-2019 prices. TAN is up 2.11%.