China's polysilicon industry analysis

China's ex-factory price of polysilicon from 230 yuan/kg in the previous year to 110-120 yuan/kg in early December, the price of polysilicon has plummeted and this phenomenon continues. The phenomenon of cost inversion is serious, and at the same time, the storm of polysilicon production has been intensified.

At present, nearly 90% of domestic polysilicon enterprises have stopped production, while the continued production of Asian silicon industry and Jiangsu Zhongneng's capacity utilization rate is only about 50%. It is expected that most of the polysilicon companies that have ceased production in 2013 will be eliminated, and the industry recovery is estimated to be in 2014.

In the case of overcapacity, the demand for polysilicon is instead due to the anti-dumping of the photovoltaic industry entering a severe cold, and this phenomenon is difficult to change in a short period of time. As the price continues to fall, the leading enterprises of polysilicon have been unable to support it, and they have stopped production. Although each manufacturer has a quotation, there is basically no sales.