AM Insight: Small green silicon carbide powder producers difficult to resume production in 2012
2012-02-28 09:33:11 [Print]
BEIJING (Asian Metal) 28 Feb 12 – Chinese photovoltaic enterprises are still running at low operating rate affected by the falling down of European PV market. Chinese major green silicon carbide powder could not release the capacity to 50%, so many small ones just keep out of production.
Germany Environment Ministry will reduce subsidy for photovoltaic industry by 15% since July 1st but it also proposes to start the plan ahead since April 1st in advance. It was reported that Germany Environment Ministry and Economy Ministry have come to an agreement to decrease the subsidy for photovoltaic industry by 20-30%. However, the final approval needed to be examined and verified by the House of Lords.
According to the plan, subsidy for small-scale roof system should be reduced by 20% while that for large-scale roof system should be reduced by 30%; electricity price should be decreased by 1% after the review in April; national power grid should only accept less than 90% of the total electricity from photovoltaic systems.
The investigation of anti-dumping and anti-subsidy is still going on in America, though American domestic consumers struggle against the investigation. The trading protectionism is spreading severely and the final result may not helpful to Chinese PV enterprises.
Most of Chinese silicon wafers and modules were exported to Europe and America, so it is difficult to continue the business with high stockpiles now.
Export market could not be relied on, so insiders pay attention to Chinese domestic market, however, in the twelfth five-plan, central government just emphasizes the improvement of technology without detailed financial support to the industry.
There are about 50-60 green silicon carbide powder producers in China, and more than 30 of them are small ones with capacity of less than 300tpm. Most of them are facing the following problems.
First, they are lacking in enough capital to start production. As most of them could not get the payment which should be collected last year, they have not enough to purchase raw materials. Most smelters asked for cash payment or draft acceptance at least.
Second, consumers could not make payment timely for the materials to be delivered this year, so they still cannot accept orders.
Third, the consumption of green silicon carbide powder keeps small, but the major ones are competing with lower prices, even though they prefer to get fewer profits. However, the small ones can only get thinner profits by providing the same quality product.
Above all, small producers of green silicon carbide powder are involved in the financial trouble and weak demand from PV market. Many of them will give up producing powder and switch to other field.
