Long-term solar wafer supply agreements continue to be cast into the history books as an unidentified European-based PV manufacturer terminates a contract with supplier LDK Solar.

The cancellation agreement will result in LDK Solar receiving approximately US$37 million in much needed compensation as the company struggles with massive debts.

The original agreement was signed, like the vast majority at the height of massive wafer shortages in 2008, due to the limited supply of polysilicon, which was being traded above US$400/kg.

New entrants and capacity expansions from existing major suppliers since has seen the price of polysilicon plummet to the low US$20/kg range, while wafer production capacity is over 100% above demand levels.