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China Solar Plant Explosion Repairs May Cause Global Price Hikes

  • Polysilicon prices rose 20% after blast shut Xinjiang plant
  • Wafermakers may raise prices to pass on increase, analyst says
Solar Farm
Photographer: Alejandro Cegarra/Bloomberg

Rising costs are threatening to ripple through the solar supply chain as workers race to repair damage from an explosion that shut down a Chinese plant that supplies a key material for the industry.

GCL-Poly Energy Holdings Ltd. will likely take one month to make repairs and restart production at its 48,000-ton-a-year polysilicon plant in Xinjiang, according to a person with knowledge of the matter, who asked not to be identified as the information isn’t public. The plant halted output after explosions July 19 resulting from distillation unit problems.