Polysilicon producers cash in as extended shortages cause prices to surge to extreme highs

Bloomberg reports that prices for polysilicon, a material that’s key to making solar panels, have continued to rise for six straight weeks.

The news outlet cites a statement from the China Silicon Association, which says the average cost of the most expensive grade of polysilicon rose 1.9% to 291.6 yuan ($43.50) a kilogram on Wednesday.

That these prices are at the highest level since late 2011.

Bloomberg says these price increases are caused by an extended shortage of material due to plant outages in China.

According to the China Silicon Association a manufacturer in Xinjiang unexpectedly shut down for repairs, with other producers outside that region scheduled for routine maintenance in the third quarter.

That July output in China is expected to be about 58,000 tons, down 3,200 tons from June.

Bloomberg says polysilicon producers are cashing in on the price surge as top manufacturer Tongwei Co.’s shares hit a record in Shanghai on Tuesday and are up 45% since the start of the year.

No. 2 producer GCL Technology Holdings Ltd.’s stock in Hong Kong recently traded at the highest level since 2011.