(IHS Markit) Polysilicon prices have jumped 175% from the start of this year to mid-June as demand for solar gained momentum from the pandemic lows of early 2020.
The high demand for polysilicon is also seen to be driven by US sanctions against a small group of producers from China.
The surge in polysilicon prices has strained solar manufacturers, who are now grappling with rising costs.
Other components of the solar panel supply chain, such as wafers, cells, and glass, have recorded a 5.9% surge in the first quarter of the year from the fourth quarter of 2020 on rising demand.
The higher costs have cut the profit margins for solar module makers, with the producers also facing potential hassles of satisfying a faster-than-expected uptick in demand amid high production costs.
Solar consumption rose by about 49% in the first quarter of 2021, compared to a similar quarter of 2020.
