Monocrystalline product demand in China to expand from 15% in 2015 to 25% in 2016. Image: Comtec
According to Taiwan-based market research firm EnergyTrend, a division of TrendForce demand for monocrystalline wafers in China is increasing due to capacity constraints with mainstream multicrystalline wafers.
EnergyTrend said that it expected monocrystalline product demand in China to expand from 15% in 2015 to 25% in 2016, primarily for use in PV power plants.
However, despite the increased demand, a tightening of supply and an uptick in pricing, overall capacity in 2016 will exceed demand.
As PV Tech recently reported, polysilicon supply in China is expected to tighten through the year as high levels of inventory built before heavy anti-dumping duties were imposed on major US producers took effect and are worked through. The result is an expected increase in polysilicon prices while demand increases.
EnergyTrend also confirmed that polysilicon spot prices in China had started to increase in January, noting a bottom of around US$15.95/kg to US$17.64/kg just after Chinese New Year.