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China's H2 Polycrystalline Silicon Market Development Not Optimistic


Post Date: 13 Aug 2012    Viewed: 949

From Jan to June in 2012, the price declining domestic polycrystalline silicon is more than 25%. China polycrystalline silicon price was always falling in 2011 resulting in 80% medium-size and small enterprises production halts. It is difficult to change for the low price competitiveness under the situation of excess capacity because of anti-tread expansion. In addition, domestic market development of polycrystalline silicon is not optimistic in the next half year because of the its import increasing. Domestic polycrystalline silicon enterprises have been in the trouble of large-scale production halts since polysilicon PV price down last year.


From the view of the national situation, there’re 43 enterprises going into polysilicon, only 7 enterprises left are manufacturing, others enterprises have closed production line, that means 80% enterprises have stopped production. From Jan to June in 2012, domestic price falls again and it is the lowest record until now. The main stream price of domestic polycrystalline silicon dropped by 25% to 0.16 or-0.17 million per ton from 0.21-0.23 million per ton at the beginning of the year. Facing the falling price, main domestic enterprises increase capacity anti-tread, which leads to the sharp situation of polycrystalline silicon oversupply.


The polycrystalline silicon output is 0.038 million tons in the first half of year based on the data statistics of silicon industry sub-association. So domestic silicon cell output is 12 GW in H1 2012, but installation capacity is 1.5GW. Many enterprises performances were bad in H1 because of the price declining. The retained profits of main enterprises fell to more than 50% in the first half of year based on the first half year achievement report firms of the enterprises, including Tebian Electric Apparatus, Chuantou Energy, CSG Holding etc.


According to “2010-2013 China Solar Energy Polycrystalline Silicon Market Research Report”, polycrystalline silicon market development is not optimistic in the next half of year under the background of PV market depression at home and abroad.


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