Polysilicon price at its best after 2 years 9 months… OCI & Hanhwa Chemical performance to get better
[ Yang Ji Yun galileo@ ] | 2017-12-26 11:01:51
[Digital Times, Yang Ji-yoon] The price of polysilicon, the base material for photovoltaic power generation, rose up to USD 17 per kilogram (kg), marking the highest level in two years and nine months. Domestic solar cell polysilicon makers OCI and Hanwha Chemical recently relieved the burden of pressure on China, and are now bracing themselves for the warmth that has come to the fore.
The price of high-purity polysilicon in the fourth week of December was USD 17.45 per kg, up 0.81% from the previous week, according to PV market researcher PV Insight.
This is the highest rate in two years and nine months since last 2015. This is due to the increase in demand for polysilicon as China`s solar power companies are competing for capacity expansion centered on high-efficiency solar cell wafers.
Inside the polysilicon industry is also one of the factors raising prices. The world`s top polysilicon plant in Berker, Tennessee, has been shut down for six months from September to February. As a result, some of China`s mass imports of polysilicon are headed for the United States. Polysilicon prices are continuing to rise as China, the largest demand for PV market and production base, fails to supply raw materials smoothly.
Experts estimate that the world`s PV installations will exceed 90 gigawatts (GW) this year. It is 20% larger than the initial forecast of 75GW.
Considering the need for 4500 ~ 5000 tons of polysilicon per 1 GW of solar power, demand for polysilicon is projected to reach at least 450,000 tonnes this year.
Meanwhile, OCI and Hanwha Chemical turned blue on earnings recovery. This is attributable to the recovery in polysilicon prices and the recent escalation in China`s trade pressure. The industry said the break-even point for Korean polysilicon makers is USD 14 to USD 15 per kilogram.
The positive atmosphere in Korea is also creating expectations for profitability improvement. According to the government`s recently announced `renewable energy 3020` plan, demand for polysilicon will increase from 12,000 tonnes per year to next year. This is a 140 percent increase from last year`s domestic demand of 5,000 tons.
Kang Jung-hwa, a senior researcher at Korea Export-Import Bank Institute for Overseas Economy, said, "Polysilicon prices have been on the rise as the photovoltaic market grew this year, breaking the initial expectation that the installed capacity of photovoltaic power generation will decrease due to sluggish markets in China and the United States. Demand will increase at home and abroad, "he stated.
\\By Yang Ji Yun galileo@
[ copyright ⓒ The Digitaltimes ]
The price of high-purity polysilicon in the fourth week of December was USD 17.45 per kg, up 0.81% from the previous week, according to PV market researcher PV Insight.
This is the highest rate in two years and nine months since last 2015. This is due to the increase in demand for polysilicon as China`s solar power companies are competing for capacity expansion centered on high-efficiency solar cell wafers.
Inside the polysilicon industry is also one of the factors raising prices. The world`s top polysilicon plant in Berker, Tennessee, has been shut down for six months from September to February. As a result, some of China`s mass imports of polysilicon are headed for the United States. Polysilicon prices are continuing to rise as China, the largest demand for PV market and production base, fails to supply raw materials smoothly.
Experts estimate that the world`s PV installations will exceed 90 gigawatts (GW) this year. It is 20% larger than the initial forecast of 75GW.
Considering the need for 4500 ~ 5000 tons of polysilicon per 1 GW of solar power, demand for polysilicon is projected to reach at least 450,000 tonnes this year.
Meanwhile, OCI and Hanwha Chemical turned blue on earnings recovery. This is attributable to the recovery in polysilicon prices and the recent escalation in China`s trade pressure. The industry said the break-even point for Korean polysilicon makers is USD 14 to USD 15 per kilogram.
The positive atmosphere in Korea is also creating expectations for profitability improvement. According to the government`s recently announced `renewable energy 3020` plan, demand for polysilicon will increase from 12,000 tonnes per year to next year. This is a 140 percent increase from last year`s domestic demand of 5,000 tons.
Kang Jung-hwa, a senior researcher at Korea Export-Import Bank Institute for Overseas Economy, said, "Polysilicon prices have been on the rise as the photovoltaic market grew this year, breaking the initial expectation that the installed capacity of photovoltaic power generation will decrease due to sluggish markets in China and the United States. Demand will increase at home and abroad, "he stated.
\\By Yang Ji Yun galileo@