Polysilicon price rebound does not change the industry decline

Drying equipment

China Drying Network News has seen a slight rebound in polysilicon prices since the New Year, which has caused many people to reverse their expectations of the PV market. But the good times are not long. This Monday, the United States Hemlock Semiconductor Group announced that it will lay off 400 people. One of the leading polysilicon manufacturers in China, GCL-Poly, has issued an early warning of a possible huge loss in 2012. Authoritative experts recently pointed out that, in the absence of a large increase in demand, the continued rise in prices is a small probability event, and the industry may continue to decline in 2013.

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Due to the global oversupply of polysilicon and the threat of tariffs on products destined for China, Hemlock will lay off about 400 employees in its factories in Tennessee and Michigan. Hemlock, one of the three largest polysilicon manufacturers in the world, is a joint venture between Dow Corning Corporation, Shin-Etsu Handotai and Mitsubishi Materials Corp.

The pessimistic news is: another polysilicon giant Norwegian Renewable Energy (REC) plans to reduce the Siemens polysilicon production capacity in the Moses Lake area of ​​the United States by 2,400 tons; as a representative of upstream equipment companies, the polysilicon ingot furnace industry leader Technology yesterday also announced the announcement of the expected reduction in its annual results: It is estimated that the net loss for 2012 will be 130 million to 180 million, while in the third quarterly report last year, it is expected to have a net loss of 068 million to 0.73 billion.

"Our share price has risen for 6 days after New Year's Day. For this reason, we want to tell investors to be rational. Although the industry has some good news, last year's losses are inevitable and cannot be blindly optimistic. We do not want the stock price to fluctuate too violently. "Lang Kam Biao, deputy general manager of Jiangsu Zhongneng Silicon Industry under GCL-Poly, said in an interview with this reporter yesterday.

He believes that the price of polysilicon will not rise to a high position in the near future. A reasonable position of more than 20 US dollars/kg is very good. The average price of polysilicon is expected to remain slightly lower than last year.

A deputy director of the Energy Development Institute of the National Development and Reform Commission recently said on internal occasions that the recent increase in the price of polysilicon is short-lived, and there is basically no possibility that polysilicon will return to 20 US dollars/kg.

The global photovoltaic industry is currently rebounding instead of reversing

“Global PV demand will not increase significantly in the future. In 2012, it will be in the range of 30-35 GW. It will be very good to reach 40-50 GW in 2015, and the capacity will still be as high as 60-70 GW. Under the condition of no increase in demand, the price Sustained rise is a small probability event. Photovoltaic industry is only in the swelling stage, not the expansion stage, and may continue to decline afterwards.” The experts said.

He also believes that China's support policy has only delayed the integration of the industry, and it is expected that the industry may continue to decline after a few months. It is expected that it may occur from six months to one year later. During this period, there may be a group of companies that cannot survive, or some companies may sell themselves.

A brokerage researcher also believes that this wave of opportunities for the non-reversal of the rebound, the global photovoltaic capacity to double, can not be digested soon. The doubling of foreign PV shares is not optimistic about the company, but speculation. Someone expects the industry to reverse within 2-3 months, which is unlikely.

“Under the influence of policies, industries and other factors, industry reversal opportunities will be postponed again. In 2013, the follow-up investment opportunities in the sector are expected to be policy-driven and “double reverse”, as well as the turning point of performance,” the researcher said.

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