Xinjiang

The latest global PV industry outlook published by trade group SolarPower Europe, has indicated tight supply of the solar panel raw material is expected to persist this year but the trade body said it would be unlikely to drive further price rises.

The four manufacturers are Hoshine Silicon, Daqo, East Hope, and GCL New Energy Material.

With the solar industry already seeing prices rise because of a shortage of panel raw material polysilicon, an explosion yesterday at the factory of a silicon metal
and silicone producer in Xinjiang could have further repercussions on supply. No casualties have been reported.

The TBEA-owned poly manufacturer has predicted further consolidation as it aims to ramp up output with another 100,000 tons of annual production capacity.

Imports from South Korea and the U.S. dwindled, year-on-year, ensuring Germany’s Wacker and the Malysian unit of Korean company OCI will supply the bulk of the world’s non-Chinese solar polysilicon this year.

Due to forced labor concerns, a ban on imports from Xinjiang to the United States appears likely. This could be another blow for polysilicon producers hit by industrial accidents and the threat of floods in the third quarter of 2020. Chinese polysilicon prices have surged more than 50% in a matter of a months. Consequently, wafer prices have skyrocketed, bringing increasing costs to the solar cell and PV module segments. In the face of price hikes, some projects are now postponed until the first half of 2021.

Polysilicon manufacturer Daqo has announced the start of pilot production in Xinjiang and expects to ramp up to full output by the end of the year, doubling the company’s annual capacity to 70,000 MT. Some 90% of its poly will be mono by that stage and Daqo expects 40% to be suitable for n-type products next year.

Chinese polysilicon producer GCL-Poly Energy Holdings yesterday announced plans to increase the production capacity of its new factory, currently under construction in Xinjiang, China, to 60,000 metric tonnes (MT) per year. Accordingly, the company expects total investment in the project to increase to around $862 million.

Daqo New Energy recorded a net profit of $24.1 million in the third quarter of 2017, as the polysilicon and solar wafer producer’s revenue rose nearly 18% from the preceding three-month period to $89.4 million.

Daqo New Energy has secured approval from its board of directors to proceed with its so-called “Phase 3B expansion plan” for its polysilicon plants in Western China’s Xinjiang region.