Special Report: 90% of Chinese Polysilicon Manufacturers Suspend Production

 Workers at GCL-Poly

About 90 percent of Chinese polysilicon producers have suspended production, according to the reports released by Xinhua.

Wang Bohua, secretary-general of the China Photovoltaic Industry Alliance (CPIA) said that Few including the Jiangsu Zhongneng, Daqo and Asia Silicon are the only working Manufacturers in China currently, the rest ie about 90% of polysilicon producers have suspended production. Even though few are operating, they are only producing 50% of the capable output.

Chinese polysilicon producers were said to also have been impacted by a rise in imported polysilicon from the major producers in Europe and the US. Reports cited that imported polysilicon had increased 26% since the beginning of the year, while ASPs were approximately 61% down from a year ago.

Why were they affected:

Polysilicon, which is the key component in solar panel construction, is seeing rapid decrease in Prices. Polysilicon prices have decreased more than 50%, to reach 110 yaun ($17.62) in early December 2012 from 230 yuan ($36.85) per kg in January 2012 this year.

Also Chinese Polysilicon producers were also affected due to over Import of Polysilsicon from Producers in the U.S. and Europe. China manufacturers imported nearly 70,210 tonnes of polysilicon from January to October, up 26.16 percent year on year, while import prices averaged 26.16 U.S. dollars per kg, down 61.10 percent year on year.

Hit Hard by Import Duty:

The Imposition of anti-dumping and countervailing duties on imports of crystalline silicon PV Cells and modules from China also impacted these players. Also Europe is also planning a similar duty imposition on Chinese Players.

  

Chinese Government Increasing Funding:

To Counter attack the reduction in exports, Chinese Government has injected 13 billion yuan to Chinese PV Industry, of which 7 Billion Yuan was allocated earlier this week. 

Article written by Adrian Smith
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