China’s silicon industry group stopped releasing prices of a key solar material after surging costs threatened the country’s ambitious renewables plan and led to a government crackdown.
The China Silicon Industry Association suspended posting weekly prices of polysilicon as supply chain costs increase and “shock” the stability of the solar industry, the group said Thursday. The association did not specify when it will resume releases.
Polysilicon is extending gains beyond its highest level since 2011 on the back of a supply shortage. That has hurt the profits of key manufacturers, pushed up the cost of panels and threatened the country’s renewable targets.
Rising Solar Material Costs
Polysilicon prices reached 10-Year high amid supply shortage
The association began collecting and publishing weekly polysilicon prices in 2014, which became increasingly influential. It decided to suspend the posting this week to avoid “over-interpretation” and “misunderstandings” of its data, according to the statement.
It’s not the first time that China has stopped publishing energy-related price indexes when markets face disruptions. The Yulin Coal Trading Center was banned from publishing data last September when thermal coal prices surged to a record that triggered government intervention. Meanwhile, China Coal Resource stopped releasing prices when the market hit a low point in early 2020 to “prevent market participants from misjudging the price trend.”
— With assistance by Luz Ding, and Dan Murtaugh.
