DigiTimes reports in light of prices of polycrystalline silicon solar cells having dropped from $2.8-3.0/watt in early November 2008 to $2.6-2.7/watt currently, and with further drops expected, some Taiwan-based makers of solar cells plan to ask their contract suppliers of solar-grade poly-Si wafers to lower contract prices to about $7.5 per 6-inch wafer, according to industry sources in Taiwan. Spot market prices of a solar-grade 6-inch poly-Si wafer have fallen to $7-8 and are expected to drop further because demand for solar cell modules has appeared to weaken, the sources indicated. Consequently, some Taiwan-based makers of solar cells plan to collectively urge respective contract suppliers of such wafers to downwardly adjust contract prices, the sources pointed out. However, it is difficult on a practical level for solar cell makers to collectively bargain with contract suppliers of wafers for price cuts because supply contracts vary more or less based on conditions such as minimum volumes, supply terms and contract prices, the sources pointed out. In addition, contract prices of solar-grade poly-Si material have not changed and thus producers of wafers are expected to be unwilling to cut their product prices, the sources explained.
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