The spot price of polysilicon in China has fallen to US$15/kg, close to the variable cost of many polysilicon providers. The contract price remains around US$20/kg. Downstream firms have been reluctant to issue orders according to contracts, causing material providers to file lawsuits.
The spot price of polysilicon from international tier-one firms has been around US$15-16/kg, and US$13-15/kg for tier-two firms. Market observers believe this price is below the variable cost for most tier-two polysilicon firms.
Some downstream firms have been selling extra material at the spot market to reduce inventory and raise cash. Nevertheless, since 2011, the contract price has been higher than the spot price, meaning firms rarely gain profits by selling extra material.
