(Yicai) Dec. 22 -- Several Chinese polysilicon makers have suspended or reduced production or started maintenance processes because of declining prices of silicon wafers, which are used to make solar cells.

A polysilicon company in Inner Mongolia Autonomous Region announced on Dec. 19 that it would halt production on Dec. 20 until further notice, the Shanghai Metals Market said.

By the end of December, the actual output of polysilicon is expected to drop by about 1,200 tons from the planned production at the beginning of the month, according to the Shanghai Metals Market.

The average transaction price of N-type monocrystalline silicon wafers fell 4.4 percent to CNY2.18 (30 US cents) yesterday from a week earlier, while those of P-type M10 and G12 monocrystalline silicon wafers dropped 7.7 percent and 7.4 percent to CNY1.92 and CNY3.02, respectively, according to data from the silicon branch of the China Nonferrous Metals Industry Association.

The main factors behind the fall in monocrystalline silicon prices are the continuous decline in raw material costs and the fact that companies with pessimistic expectations for downstream demand in the first quarter of next year have begun to sell inventories, the CNIA’s silicon branch said.

China’s new photovoltaic installed capacity was 21.32 gigawatts in November, up nearly 57 percent from a year earlier, with the figure expected to hit a new record high this year, according to data from the National Energy Administration.

On Dec. 15, the China Photovoltaic Industry Association raised its forecast for the country’s new PV installations for this year to between 160 GW and 180 GW from 120GW to 140GW.

Editor: Futura Costaglione