Spot prices for 6-inch solar-grade polycrystalline silicon (poly-Si) wafers have risen to US$4 in small trade volumes due to shortages, and prices may go up further, according to photovoltaic (PV) industry sources in Taiwan.

Demand for solar cells and/or PV modules in Germany, Italy, France and other European countries are strong currently due to a boom in installation projects eyeing higher government subsidies by the end of 2010, the sources said. Contract prices for 6-inch poly-Si solar wafers have increased to US$3.7-3.8, and solar cell makers with insufficient contract supply have to seek supply from the spot market, the sources indicated.

While many Taiwan- and China-based solar cell makers are expanding their production capacities, oversupply is unlikely to happen until 2011. Demand in the market will remain strong until the end of November 2010, but may turn weak in December 2010 or the first quarter of 2011 when the global market enters into the low season, according to Simon Tsuo, chairman of Taiwan-base solar cell maker Motech Industries.

Motech plans to expand in-house annual capacity of Poly-Si solar wafers from 120MWp currently to 300MWp to meet one-third of its own demand.