China's first polysilicon company to bankrupt polysilicon prices rebounded slightly

After experiencing three consecutive quarters of price declines, polysilicon prices finally rebounded slightly last week, but they are still quite far from the break-even line of most domestic polysilicon plants. At the same time, some small and medium-sized polycrystalline silicon plants in China gradually fell short of the "cold winter," and the first cases of bankruptcy meant that the polysilicon investment bubble formed in recent years was beginning to crack. The industry believes that the key to whether the photovoltaic industry can get out of the predicament depends on the policy orientation.

According to PVinsights data, the average polysilicon price was reported at 29.2 US dollars/kg last week, up 2.1% from the previous week. Solar Trends Research Institute's Energy Trend data showed that the average price of polysilicon rose last week to 24.21 US dollars / kg, the chain rose 1.77%.

"After experiencing a sharp decline in the previous period, polysilicon prices have indeed stabilized recently and it is expected that this situation will continue for some time." Lu Jinbin, deputy general manager of Jiangsu Zhongneng Silicon Industry, the country's largest polysilicon producer, was accepting this reporter's report yesterday. During the interview, because of the rapid decline in raw material costs, the prices of downstream components and batteries have become quite competitive, but some companies are still digesting “old singles” and cannot compete at a lower cost in the short term.

Nevertheless, this price level is still lower than the cost of most domestic polysilicon manufacturers. “Most of the domestic small and medium-sized polysilicon plants cost between US$60 and US$70 per kilogram. In the case of quotation and cost upside down, a considerable number of manufacturers can only choose to stop production.” Lu Jinbiao reveals that at present, there are only five or six polysilicon enterprises in China. In production.

What is more serious is that some companies that have stopped production are no longer in the "winter". The reporter learned from the People’s Court of Pinghu City, Zhejiang Province that Zhejiang Xiecheng Silicon Industry Co., Ltd., which was established in 2008 and has invested billions, has entered bankruptcy liquidation. This is expected to be the first bankrupt polysilicon plant in China.

According to statistics, the company was established in July 2008 with a registered capital of RMB 250 million. It is a high-tech private enterprise that develops and produces trichlorosilane, polysilicon, monocrystalline silicon, silicon wafers, and solar photovoltaic modules. The company's first phase of a polysilicon project with an investment of 850 million yuan was put into operation at the end of 2010.

“For the current photovoltaic industry, it is not only the price reduction that can relieve the crisis, but it still needs policy support. In the future, as the price of thermal power is getting higher and higher, and the cost of photovoltaic power generation is getting lower and lower, the industry will usher in a turning point.” Lu Jinbiao said.

It is reported that the “Foreign Investment Industry Guidance Catalogue (Revised in 2011)” recently released by the National Development and Reform Commission and the Ministry of Commerce removes polysilicon from the encouraged foreign investment industry catalog, which means that the government no longer hopes that foreign capital will invest in polysilicon in China. This is for domestic industries. Will play a protective role.