Polycrystalline Silicon’s Supply And Demand Relation Becomes Moderate

Published:2011/4/27 2:05:00 Author:Li xiao na From:SeekIC

The development of polycrystalline silicon industry has begun in the 1950s. The related products are mainly provided for the semiconductor market. Because the demand of semiconductor Market is low, the boom of this industry is benefited from the development of photovoltaic industry. Currently, more than eight-five percent of the polycrystalline silicon products are applied in this industry. Take the Hemlock for instance, the polycrystalline silicon production of this company reached 6200 tons in the last century, and most of them were used for the semiconductor. But only thirty percent of the products are used by the semiconductor industry nowadays, and seventy percent of the products are used by photovoltaic industry.

2010 is the year that the photovoltaic industry grows fastest. In order to install the system before the subsidy reduction, all the system integrators made an overdraft. Their behaviors made the demand increase quickly. The scale of installing market reached 17WG in the year of 2010, which had increased by 136%. In the aspect of polycrystalline silicon, its shipment reached 160 thousand tons in the year of 2010, and the growth rate was fifty-two percent. The German company Wacker ranks first with its shipment of 30.5 thousand tons all over the world, and Hemlock follows after it. GCL-POLY ENERGY in China, OCI in Korea and REC in Norway separately rank third, forth and fifth. The Productivities of these five companies take sixty percent of the entire output.

The price of polycrystalline silicon has reduced from the early 2010. The price was about forty-five US dollars per kilogram in April and May 2010. With German’s subsidy reduction in July, many system integrators were trying to install the photovoltaic power station before the policy. Therefore, the demand of the polycrystalline silicon increases and the price keeps growing. The price was about 120 US dollars per kilogram in October of 2010. All in all, the scale of production is expanding and the technology is developing, so the cost will reduce in the future days.

Based on the Fine Prospects and high rate of return on investment, many manufacturers are expanding the production. The polycrystalline silicon is the capital and technique intensive industry; therefore, its investment cycle is about two years. In the long run, the supply relationship between upstream and downstream is moderate, and the price will also be reasonable. Moreover, the integration of the polycrystalline silicon industry can not be avoided. The sustaining investment of technology and production scale can keep the competitive advantage in the international market. The related integrated circuit is Z100M1UFE.

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