With plans to double polysilicon production by the end of 2014, China-based Daqo New Energy has secured its first contract for supply starting in 2015 for its expanded capacity.
The company said that the new two-year supply framework would be based on spot market prices rather than contracted fixed-price, take-or-pay arrangements that were typical when polysilicon was in short supply.
The customer, said to be a leading PV company, has contracted to purchase approximately 20% of Xinjiang Daqo's polysilicon capacity in 2014, and 15% in 2015.
Dr. Gongda Yao, Chief Executive Officer of Daqo New Energy said: “As the market keeps improving, we have seen stronger demand for polysilicon recently. It is the first contract that we signed for our 2015 capacity.”