Polysilicon prices going up

Fuel-price hikes are part of the reason

By Tom Stundza -- Purchasing, 2/20/2008 9:37:00 AM

Some Asian manufacturers of polysilicon used to make semiconductors have raised 2008 contract prices to an average $95/kilogram from $82.50 in 2007, according to reports in Japanese media outlets. The suppliers also have also raised the price of polysilicon used to make solar cells to $75/kilogram from $67.50/kg in 2007. However, news reports also say Japanese producers Tokuyama, Mitsubishi Material and Osaka Titanium are angling for slightly higher 2008 prices—$97 for chip silicon and $79 for solar panel material.

The news reports point to tighter supply-demand fundamentals and the rise in raw materials and fuel prices as the reason for the polysilicon price hikes. These price hikes will result in increased raw materials costs for silicon wafer manufacturers. There also are reports that prices of Chinese metallic silicon loaded in February bound for Japan have risen substantially to $2,200/ton from $1,600 in the fourth quarter of 2007.