2011 polysilicon price trend analysis

The price of polysilicon as a new energy source in the past few years has been as thrilling as a roller coaster. The peak value in 2006-07 reached 500 US dollars/kg, and 08-09 fell to 40 US dollars/kg again. Until 2010, with the improvement of the world economic situation, the prosperity of the photovoltaic industry has rapidly increased, bringing about a recovery of polysilicon demand in the market. Its market price continues to increase, starting from more than 50 US dollars/kg in May and June. Rise to $90/kg. But it should not be possible to return to the $500/kg in that year.

The price of polysilicon in 2011 will be mainly affected by several major factors:

The global PV market structure has shown new trends after July. European countries outside of Germany, such as Italy, France, and Asia, North America and other emerging markets, grabbed cargo in Germany in the first half of this year and grabbed Germany’s capacity to consolidate its own installed capacity, and in some of these regions, the global market demand continued to grow after July 1. - Most of the orders received by photovoltaic manufacturers in Taiwan in the near future came from outside Germany.

The first major market for polysilicon in Europe (including Germany, Italy, Czech Republic, France, etc.) has recently heard that the government's subsidy in the photovoltaic industry tends to be conservative, and it is bound to affect the sales of polysilicon. For example, in the second half of this year, Italy may face a subsidy that may be reduced in 2011. Therefore, it is actively rushing to pick up equipment in 2010, but inevitably there will be no such momentum in 2011. The market's demand for the solar optoelectronics market in 2011 presented a variety of noises, long and short periods of time. However, the cost reduction of the solar energy industry's supply chain is fast enough to bear the impact of government subsidies under the cuts. It is estimated that there will still be 20 billion watts of global demand in 2011.

The current domestic dependence on imports is heavier. In June 2010, China imported 3,784 tons of polysilicon, an increase of 208.1% year-on-year. From January to June, the total amount of domestic polysilicon imports was as high as 19.33 million tons, and last year the domestic polysilicon production was only 10,000 tons. At present, in the production of solar photovoltaic modules, the global share of China's production has rapidly risen from 20% in 2006 to 35%. China has become the largest producer in the world, and the rapid growth in the production of solar modules has pushed up the price of polysilicon products. Under the dual influence of strong downstream demand and slow release of new upstream production capacity, the polysilicon industry has become the hottest emerging industry in the country. Many companies and many cities are scrambling to launch a silicon industry project. This phenomenon is called “crazy polysilicon”.

Many companies enter the photovoltaic industry and expand production capacity At the end of 2009, GCL-Poly announced that in addition to continuously expanding its production capacity of Xuzhou Zhongneng, a polysilicon plant, it also invested in the production of silicon wafers. In 2010, polysilicon reached 17,000 tons equivalent to 3 billion watts of solar cells. The production capacity and total silicon wafer production capacity have also reached 3.5 billion watts. Recently, the total production capacity has been announced in full. It has become China's largest polysilicon and silicon wafer fab, which has made global solar energy companies amazed by the targets and high levels of implementation for their expansion.

At the end of 2010, Green Energy consumed the high-priced raw materials signed before the 2009 financial turmoil. It is estimated that the cost competition in 2011 will have more advantages, and it will work together with its parent company, Datong North and South to build 1.5 billion watts of silicon wafer production capacity.

At the end of 2010, Xuanjing, a silicon wafer fab of Yangon, was integrated with silicon wafers in the upstream area for many battery factories in the near future. For example, Sino-American silicon wafers and Sun Microsystems Group = Sunshine or Twins went hand in hand with Taifei and Zhongding Investment. Step into silicon wafers. The solar optoelectronics industry has grown rapidly. It is a very correct strategy for industry operators to join hands to catch up on the market. Optimistic expectations can all spark different sparks. In 2010, the total output was approximately 220 megawatts (MWp), and the order visibility was also good in 2011. As a result, it actively expanded its production capacity. The Guanyin plant's capacity reached 670 MWp, which was completed in October 2011. The current forecast for the copper thorium plant at the end of 2011 is The 170MWp of the Guanyin plant will bring the total production capacity to 500MWp and 1GW in 2012. In the first half of the year, the earnings per share of Xujing were NT$1.01, which is much better than the loss of RMB1.75 in the same period of 2009.

"Polysilicon Industry Access Requirements" The "Polysilicon Industry Access Requirements" released by the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Environmental Protection were issued on January 24th, according to the optimization of layout, structural adjustment, energy conservation, Reduce the principles of consumption, environmental protection and safe production, and formulate industry access conditions. Suspension of examination and approval of new projects will be beneficial to existing enterprises and it will be possible for half of the enterprises to be eliminated.

In a comprehensive view, polysilicon was affected in many ways in 2011, the market may shrink, and the continuous expansion of production capacity will cause the price of polysilicon to fall. At the same time, due to the well-developed photovoltaic industry, the price of polysilicon continued to rise in the second half of 2010. The price of polysilicon will rise steadily in 2011, but there will be no madness from the director in 2010.

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