Since this is a FSLR board lets talk about what the REBOUND in poly prices means. This is a good thing for FSLR. Their panels will continue to get cheaper while the others companies panels will get more expensive.
No one has said poly prices are "rebounding" - they are bottoming. They have dropped from over $400/kg to $16/kg. Optimistic estimates claim that they could reach $25/kg by the end of the year. They need to get to over $40/kg before FSLR could increase its margins. Its the same with natural gas - everyone gets all excited when nat gas rises from the low $2's to the low $3's - but until it gets to $6.50 or so the move is irrelevant to solar competitiveness.
The market has decreased production to stablilize pricing:
Hemlock Semiconductor Group announced today it will lay off approximately 400 employees in Michigan and Tennessee in the coming weeks in response to significant oversupply in the polysilicon industry and the threat of potential tariffs on its products sold into China.
These actions will affect approximately 300 employees at Hemlock Semiconductor's Tennessee site and 100 at its Michigan site, as the company evaluates the longer-term impact of these conditions on its business. Should market conditions persist, these layoffs could become permanent.
"This is a difficult but necessary decision to enable Hemlock Semiconductor to navigate the volatility in the polysilicon and solar industries," said Andrew Tometich, president of Hemlock Semiconductor. "The unresolved trade disputes among the U.S., China and Europe are a major factor in Hemlock Semiconductor's actions as the threat of tariffs on U.S. polysilicon imported into China has significantly decreased orders from China, which is home to one of the largest markets for our products."
FRANKFURT/MUNICH, Feb 7 (Reuters) - Wacker Chemie said rising demand in China and the United States had halted a slide in the price of polysilicon, potentially brining an end to years of margin declines for a key ingredient needed for making solar panels.
"It looks as if prices for polysilicon have reached a floor," Chief Financial Officer Joachim Rauhut said, adding the world's No.2 maker of polysilicon still had a tough first quarter ahead of it.