AM Insight: Chinese polysilicon enterprises in survival struggle amid sluggish global PV market
2012-09-05 08:54:49 [Print]
BEIJING (Asian Metal) 5 Sep 12 – The global PV industry began to develop since many European countries have announced the subsidies for solar industry in 2005. Chinese investors joined the solar market subsequently. The global solar markets developed and grow rapidly. With the development of global PV industry, many solar companies obtain huge profits, thus more and more investors join the ranks in succession.
However, under the sluggish global economy, serious European debt crisis and some others multiple adverse factors, the global PV market has been renovated. Global PV product prices fell gradually, and many European solar enterprises announced bankruptcy. Chinese PV market has also been involved in the depressed maelstrom. The global PV industry ran slowly, resulting in weakening demand for polysilicon and consequent price decrease of the material. Hence price war was triggered among global polysilicon producers. A large number of imported polysilicon entered the Chinese polysilicon market with lower price, leading to poor sales of Chinese polysilicon. Chinese polysilicon enterprises run with difficulties.
The solar PV industry chain includes five parts, which are silicon purification, silicon ingot / silicon wafer production, photovoltaic cells, photovoltaic cell components production and the application system. Chinese PV industry develops later than the European centuries, and the whole PV industry chain is weak. Although an annual PV module production accounted for a larger share of global output, actual use is far less than its output. Chinese PV market has not yet formed its own well-functioning system, and domestic PV market excessively depends on overseas markets. With the continued downturn in the global PV market, Chinese PV industry could not escape.
Polysilicon production plays an important role in the whole industry chain of solar market. Unfortunately, the vast majority of Chinese polysilicon enterprises have to use the introduced technology, which is the improved Siemens process. Control of production costs is a direct result of the limitations in the production of technical difficulty. According to the relevant data, the production cost of improved Siemens process is about RMB200/kg (USD31/kg), while the current spot market price of polysilicon is about RMB150-160/kg (USD23-25/kg), lower than the cost of most factory. Therefore, a large number of domestic polysilicon enterprises stop production, and only individual enterprises who rely on old customers and old orders are struggling to maintain production. Now, some polysilicon enterprises realize that the importance of production technical reform, but the current polysilicon production technology improve with difficulties. From raw material procurement, use and material recycling, every step requires in-depth research. It is difficult to see significant improvement in a short time. The road of reform and innovation of Chinese polysilicon enterprises is a long way to go.
In other related news, Dr. Zhengrong Shi, the founder of Suntech and one of the Chinese PV industry leaders, announced his resignation as the CEO of the company. The photovoltaic market participants think the future market will be more pessimistic. Suntech Group is likely to reorganize within a few months, and the state-owned enterprises will intervene. The resignation of Dr. Zhengrong Shi shows that personalized empirical models of the PV market will gradually be nationalized instead, and Chinese PV market will be standardization and rationalization. Chinese polysilicon enterprises will be put in survival struggle under the sluggish global solar market.
However, under the sluggish global economy, serious European debt crisis and some others multiple adverse factors, the global PV market has been renovated. Global PV product prices fell gradually, and many European solar enterprises announced bankruptcy. Chinese PV market has also been involved in the depressed maelstrom. The global PV industry ran slowly, resulting in weakening demand for polysilicon and consequent price decrease of the material. Hence price war was triggered among global polysilicon producers. A large number of imported polysilicon entered the Chinese polysilicon market with lower price, leading to poor sales of Chinese polysilicon. Chinese polysilicon enterprises run with difficulties.
The solar PV industry chain includes five parts, which are silicon purification, silicon ingot / silicon wafer production, photovoltaic cells, photovoltaic cell components production and the application system. Chinese PV industry develops later than the European centuries, and the whole PV industry chain is weak. Although an annual PV module production accounted for a larger share of global output, actual use is far less than its output. Chinese PV market has not yet formed its own well-functioning system, and domestic PV market excessively depends on overseas markets. With the continued downturn in the global PV market, Chinese PV industry could not escape.
Polysilicon production plays an important role in the whole industry chain of solar market. Unfortunately, the vast majority of Chinese polysilicon enterprises have to use the introduced technology, which is the improved Siemens process. Control of production costs is a direct result of the limitations in the production of technical difficulty. According to the relevant data, the production cost of improved Siemens process is about RMB200/kg (USD31/kg), while the current spot market price of polysilicon is about RMB150-160/kg (USD23-25/kg), lower than the cost of most factory. Therefore, a large number of domestic polysilicon enterprises stop production, and only individual enterprises who rely on old customers and old orders are struggling to maintain production. Now, some polysilicon enterprises realize that the importance of production technical reform, but the current polysilicon production technology improve with difficulties. From raw material procurement, use and material recycling, every step requires in-depth research. It is difficult to see significant improvement in a short time. The road of reform and innovation of Chinese polysilicon enterprises is a long way to go.
In other related news, Dr. Zhengrong Shi, the founder of Suntech and one of the Chinese PV industry leaders, announced his resignation as the CEO of the company. The photovoltaic market participants think the future market will be more pessimistic. Suntech Group is likely to reorganize within a few months, and the state-owned enterprises will intervene. The resignation of Dr. Zhengrong Shi shows that personalized empirical models of the PV market will gradually be nationalized instead, and Chinese PV market will be standardization and rationalization. Chinese polysilicon enterprises will be put in survival struggle under the sluggish global solar market.
Polysilicon 6N Delivered China
Unit:RMB/kg
China silicon metal producers' number MoM output increase statistics by province by month
Unit: pcs
