The strong demand for polysilicon

The strong demand for polysilicon

The strong demand for polysilicon :

Demand for polysilicon is strong, price jumps 230% in two years and solar ETF gains 6%.

The price of polysilicon, an important raw material for solar panels, has risen by 230% in the past two years. The outside world believes that polysilicon prices continue to rise, which means a continued supply shortage and market conditions may be tight until the end of the third quarter, encouraging solar ETFs to soar.

On the 27th, the “Invesco Solar ETF”, which tracks solar energy companies, rose 6,14% to close at $77,09, its highest close since June 7th, and reached its 200-day line.

Bloomberg reported that Tongwei, a Chinese solar power plant, announced on the 25th that the price of solar cells will increase by 3,2% to 4,1%. LONGi Green Energy followed up, saying on the 26th that the price of solar silicon wafers has increased by 3,3%~4,3%.

Daiwa Capital Markets analyst Dennis Ip said silicone fab LONGi was able to push prices higher, indicating strong demand. Europe's rush to wean itself off its dependence on Russian gas has led to a surge in Chinese exports of solar products. Daiwa estimates that the polysilicon market will be tight until September and the production bottleneck will not improve until new capacity comes on board in the fourth quarter.

Polysilicon factory profits soar

According to Argus and PV Magazine, the price of polysilicon recently reached a new high since 2011 after a decade of continuous decline. China is a major producer of polysilicon. In January 2021, Chinese polysilicon was US$13 per kg and now the price has jumped to US$43 per kg, an increase of 230%.

There is a severe shortage of polysilicon, mainly due to accidents and the shutdown of large factories in Xinjiang. Almost 50% of the world's polysilicon comes from Xinjiang.

South Korean polysilicon industry OCI said the price of polysilicon continued to strengthen, indicating that supply still cannot meet demand for silicon wafers and downstream. OCI's second-quarter revenue rose 17,3 percent year-on-year to 387 billion won ($296 million) on the back of polysilicon growth. Preliminary guidance from Chinese polysilicon producers Daqo New Energy and GCL-Poly Energy showed their second quarter profits rose 335,03%~344,28% and 187,5% respectively.

Finally

The energy crisis broke out in Europe and they bought Chinese solar products. From January to May this year, Europe imported 63 GW of solar panels, of which 33 GW came from China, an annual increase of 140%.