Polysilicon is seriously in short supply, tightening policy for a year or relaxing for the first time

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Editor's Note: Last year, the State Council issued strict restrictions on new polysilicon project documents. However, since the beginning of this year, with the strong recovery of the global PV market, the silicon material of the international polysilicon market has sold out. The polysilicon market has experienced serious shortages and prices have risen. Therefore, relevant departments have begun to study the issue of polysilicon project approval and relaxation.

As the main raw material for the semiconductor and photovoltaic industries, polysilicon once dominated the “floating and floating” of the photovoltaic industry a few years ago, and the saying that “the silicon is king” is not lost. However, in the second half of last year, this industry was classified as “two highs” and the approval of related projects was suddenly tightened.

After a lapse of one year, when a large number of domestic polysilicon projects were hit into the “cold palace”, the silicon materials of the international polysilicon plants were sold out, the market continued to be in short supply, and prices continued to rise. Our reporter confirmed from many parties yesterday that at present, domestic policies on polysilicon are facing re-examination, and relevant departments have begun to study and relax project approval to cope with this new situation.

“On just over a week ago, the relevant departments convened a meeting of the leaders of several of the largest polysilicon plants in China. One was to investigate the current supply and demand situation of polysilicon in China, and the other was to solicit opinions on the polysilicon industry policy.” Photovoltaic enterprise executives told this reporter yesterday.

Insiders of a polysilicon factory in the South revealed that some time ago, the National Development and Reform Commission and the Ministry of Science and Technology often came to the factory to investigate polysilicon energy consumption indicators, which may be to revaluate polysilicon should not be classified as "high energy consumption."

“The approval of polysilicon project should be relaxed.” An inspector from the Ministry of Industry and Information Technology told this reporter yesterday that due to the serious shortage of domestic polysilicon this year, the Ministry of Industry and Information Technology also began to reflect on the gains and losses of “No. 38 Document” last year.

The so-called "No. 38 Document" refers to the "Opinions on Suppressing Overcapacity in Some Industries and Reducing Construction to Guide the Healthy Development of Industries" issued by the State Council on September 26 last year, which pointed out that China's polysilicon is under construction capacity. 80,000 tons, the production capacity has been significantly surplus. The document stipulates that polysilicon projects below 3,000 tons will not be approved in the future, and strict control of new polysilicon projects in areas with low energy shortages and high electricity prices.

After the documents were issued, the approval of domestic polysilicon projects was tightened instantly. The projects without civil works in various places were all stopped, and many projects that had entered the civil construction stage began to be re-evaluated.

But this year, with the strong recovery of the global PV market, the polysilicon market has experienced serious shortages and prices have risen.

According to customs data, the import volume of polysilicon in the first three quarters of China was slightly lower than that in February, and the other months were more than 3,000 tons. In particular, the import volume of polysilicon in September reached 4,757 tons, an increase of 90.1% year-on-year and a 26.3% increase. In the first three quarters, a total of 31,503 tons were imported. According to this, China's polysilicon imports this year may reach 40,000 tons. The actual production of polysilicon in China this year is only 40,000 tons, which means that half of the domestic polysilicon needs to rely on imports.

Correspondingly, some of the international polysilicon leading manufacturers such as WACKER have sold out their production capacity from this year to 2013.

"At present, everyone has reached a consensus that industries such as polysilicon cannot be directly characterized as overcapacity, and at most low-level overcapacity," said the inspector of the Ministry of Industry and Information Technology.

He pointed out that a general trend now is to stimulate domestic PV applications, so that even if polysilicon is really surplus, it is enough to digest, "not to mention that there is no excess."

In view of the actual development of the polysilicon market, the relevant departments will gradually liberalize the approval of polysilicon projects in the future. They will not stop all the way in the past, and they will not simply let go, but treat them differently. .

The insiders of the above polysilicon manufacturers said that the polysilicon industry can't just look at the absolute power consumption, but should look at the energy consumption per unit of GDP. "This data is lower than many industries."

He pointed out that because the major international manufacturers have expanded their production, it is a bit late to release the domestic polysilicon project. However, after the future projects are re-launched, the demand for related equipment will increase greatly, and the related auxiliary materials market will also be motivated.

At present, the domestic listed companies producing polycrystalline silicon ingot furnaces and single crystal furnaces include Jinggong Technology and Tianlong Optoelectronics. The auxiliary materials enterprises include Xindaxin Materials and Stellar Technology, and the enterprises involved in polysilicon manufacturing have Tianwei Baobian and TB Electricians. .

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