This morning there are a number of data points suggesting weakness in polysilicon pricing.
Digitimes reports there were some small transactions at $100/kg in the spot market but that most prices have been more like $120-$130/kg. Also according to Digitimes, China-based solar cell makers are predicting contract prices dropping from $100-130/kg to $60/kg and eventually to $25/kg. LDK’s CEO suggested spot prices have room to fall. Lastly, Barclays indicated the weak semi market is forcing Japanese suppliers to sell excess poly in the Chinese spot market after 2 months of stability. Barclays says spot pricing is now below $100/kg.
WFR is a silicon supplier to semiconductor and solar manufacturers. WFR has been a notoriously poor performer, even when they had a rising tide of semiconductor and solar demand. As demand in both markets has flagged, they’ve been forced to renegotiate their allegedly iron-clad contract prices lower. I’m thinking they’ve got a rough day ahead of them as investors factor in a more aggressive spot pricing environment.