Polysilicon companies welcome a new round of development

On May 20th, an executive from a polysilicon company stated that companies including Ruineng and CSG A have already begun to enter the stage of small-scale production. “The resumption of production of silicon in Kunming Metallurgical Research Institute and Luoyang is also complete.”

Previous polysilicon dual anticipation is expected to be released in April, when Luoyang Silicon, LDK, Sichuan Ruineng and many other large-scale polysilicon manufacturers are planning to resume production at the end of April, and the domestic scale of these companies are 3000 More than tons.

However, with the delay of the initial cut of polysilicon, the progress of the production of polysilicon enterprises in China has been delayed. On May 16, Shen Danyang, spokesperson of the Ministry of Commerce of the People's Republic of China stated that China's dual anti-polysilicon dual anti-Japanese will be announced in June.

First quarter polysilicon production less than 10,000 tons

“The news we heard was announced on or about June 3.” A polysilicon executive in central China revealed that in the initial plan, more than 40% of punitive tariffs will be imposed on Europe, the United States and South Korea. Among them, imported polysilicon from the United States gives the highest punitive tariff rates, while South Korea has the lowest.

In 2012, the total domestic polysilicon market demand was approximately 145,000 tons. Among them, imported polysilicon was 82,800 tons, an increase of 28% from the 64,600 tons in 2011, and the total value was more than 2.1 billion US dollars. Affected by the low-price dumping of polysilicon giants in Europe, the United States and South Korea, China’s polysilicon production in 2012 was 63,000 tons, which was 23.8% lower than the 84,000 tons in 2011.

According to the website data of China Nonferrous Metals Industry Association Silicon Industry Branch, in the first quarter of 2013, the domestic polysilicon production was less than 10,000 tons, which was more than 50% lower than the same period of last year. At present, there are only 4 polysilicon enterprises capable of maintaining production in China, which is less than 10%. The actual operating rate is less than 25%.

The reporter was informed that by mid-2012 as a node, he was able to include Sichuan Ruineng, Yongxiang, Tianwei, Ledian Tianwei, Shin Kong Silicon, Dongqi Handan, Kunming Yeyan, Asia Silicon, Luan, etc. The polysilicon companies have all ceased production, and Sicheng Silicon and Ningxia Silicon have continued to enter bankruptcy procedures for insolvency.

Luo Dayang, deputy general manager of Silicon Valley, said that the original preliminary announcement date of the Ministry of Commerce was announced in April and is now postponed two months. The polysilicon company’s plan for resumption of production has to be put on hold until June.

Reproduction precursor

LDK, president and CEO of LDK, said that the increase in polysilicon prices will drive downstream prices to rise. Recently, LDK established a recruitment plan for 1,200 people, which is considered to be a precursor to the resumption of production.

At present, the European exporter is Germany. In 2012, Germany, the United States, and South Korea accounted for 87.6% of China's polysilicon imports. This also means that the high tariffs will keep Germany, the United States and South Korea out of the Chinese market, during which the vacuum will be filled by domestic companies.

According to data released by the China Nonferrous Metals Industry Association, since March this year, the price of polysilicon has increased from 115,000 yuan/ton at the end of December 2012 to 214,600 yuan/ton in March 2013, an increase of 24%.

As the world’s largest polycrystalline silicon producer, GCL-Poly’s first-quarter production of 8653 tons of polysilicon accounted for more than 86% of the domestic market share. “The current market price has increased from RMB 111,000/ton at the end of December 2012 to the current RMB 137,000/ton.” Lu Jinbin, deputy general manager of Zhongneng Silicon, a subsidiary of GCL-Poly, told reporters that the future volume of silane fluidized bed Post-natal polysilicon entered the $10 cost era.

A person in charge of CSG A told reporters that CSG’s 6,000-ton polysilicon cold hydrogenation renovation has been completed. “Our cost is below US$18/kg, and the current market price is around US$21/kg.”

In Lu Jinbiao's view, because of restrictions on thermal power costs and power consumption, companies that can resume production generally have a production capacity of 6,000 tons/year or more. Such a resumption of production will result in a competitive advantage, and the production of this part of production capacity is sufficient to meet domestic demand. The needs of downstream battery and component companies.