Polysilicon supply is tight in the first quarter of 2014

Abstract According to a research report from EnergyTrend, a division of TrendForce based in Taiwan, there could be a potential shortage of photovoltaic (PV) modules by the first quarter of 2014. The report highlights that strong demand from downstream markets is expected to continue, putting pressure on the supply chain.
TrendForce notes that the current polysilicon production capacity is expected to support around 7.2 GW of PV module shipments per quarter in 2014. However, this may not be enough to meet the rising demand. EnergyTrend anticipates that wafer demand in Q1 2014 could reach up to 8 GW or more. With lower polysilicon inventory levels, the supply might remain tight until new capacity comes online or existing facilities are expanded. Still, the shortage is unlikely to affect overall system installations or net volume. Polysilicon prices are expected to rise before producers can ramp up idle capacity to match demand. This could lead to challenges in meeting PV module requirements during the first quarter of 2014. Additionally, as Japan and the UK adjust their feed-in tariff policies at the end of the quarter and fiscal year, PV demand is projected to surge in Q1 2014. This shift in policy is likely to drive significant activity in the solar market. In 2013, EnergyTrend estimated that global grid-connected PV installations reached 28.6 GW, with component shipments totaling approximately 33.3 GW. These figures highlight the rapid growth of the solar industry and the increasing importance of supply chain stability to meet future demand.

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