(Yicai Global) March 29 -- China's solar park boom that is showing no signs of abating is fattening the balance sheets of polysilicon manufacturers, including Tbea and Tongwei Solar.

The two major solar wafer material suppliers said their net profits may have jumped substantially this year due to strong demand, rising prices, and added production, the rivals said in separate statements yesterday.

A photovoltaic company executive told Yicai Global that over the past two weeks silicon product demand has surpassed supply despite high prices. Such prices are expected to remain elevated till the fourth quarter as it takes time to add output, the person added.

Solar silicon prices have climbed for 10 straight weeks since January due to robust demand. In the first three months of this year, the increase has been 7 percent, according to industry data. Prices surged almost three times last year.

It is a seller's market. Tongwei expects its net profit to have increased by at least six times in the first there quarters of this year from a year ago, said the Hefei-based firm.

Changji-based Tbea's net profit could have jumped almost six times or even nearly seven times during the same time period, it said.

Growth is accelerating. In 2021, Tongwei's net profit more than tripled, when excluding non-recurring gains and losses, from 2020. That year, Tbea's gains were expected to rise by more than three times.

Leading raw material suppliers are expanding production. By December, China's total silicon capacity should rise to exceed one million ton, doubling from a year ago, according to industry data.

Upstream prices are rising. On March 25, Longi Green Energy Technology announced its fifth monocrystalline silicon wafer price hike this year.

The demand has been growing faster than expected in the first quarter, and especially in Europe, so the recent silicon wafer price hikes make sense, according to the above-mentioned executive. But it's a different story with last year's additions that raw material buyers needed to digest, the person added.

However, downstream clients may not see the hikes yet. Although upstream product prices have been adjusted, solar modules are still priced similarly as before, Yicai Global learned.

If the prices of raw materials and wafers continue rising, downstream enterprises may resort to wait-and-see attitudes with new solar park projects, said the PV manager. So it is wise to pay attention to the operating rates of all parts of the industrial chain. So far it seems like solar module makers have fully packed schedules till the end of this month, the person added.

Editors: Tang Shihua, Emmi Laine, Xiao Yi