Polysilicon oversupply coming up?
MEMC Electronics (NYSE: WFR) and Sunpower Corp. (Nasdaq: SPWR) reported earnings last week and we got some more insight into the Polysilicon supply last week:
- Credit Suisse analyst Satya Kumar, “We see so much new poly coming online that it is now becoming a question of when, not if poly will go into oversupply; and our analysis suggests that first quarter 2008 could be when supply growth inflects high enough to overcome demand,”
- MEMC Electronics: Demand from the solar market, however, continues to be healthy.
- Sunpower Corp., “our partners M.Setek and DC Chemical have made steady progress with their new polysilicon manufacturing facilities”.
- Sunpower Earnings call transcript via SeekingAlpha:
- Two new entrants in the Polysilicon arena: M. Setek is integrating upstream to begin polysilicon production and their polysilicon plant is on schedule to deliver silicon based on this new capacity in Q3 of 2007. The other new entrant is DCC, the leading Korean chemical company and they are on schedule, as well, to begin delivery of polysilicon to us in Q1 of 2008.
- We expect pricing to be up relative to 2006 approximately 10%.
- In 2008 we would expect silicon prices to go down.
Click here to see how polysilicon affects solar stocks and to learn about Polysilicon
* I am short WFR and FSLR
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