The polysilicon industry shifts from monopoly to competition

Organic chemicals: The field of polysilicon is under siege Keywords: Financial crisis breakeven point for polysilicon production, quality and cost are key. Therefore, polysilicon companies should adjust their development pace, practice hard, stabilize the system, improve quality, reduce consumption, and respond to market changes. The unexpected arrival of the international financial crisis caused the previously extremely hot polysilicon market to suddenly cool down.: Prices have dropped by nearly two-thirds, and some companies that produce polysilicon have failed to survive this "severe winter" and have either stopped production or gone bankrupt. However, recently, many domestic companies have begun the construction and expansion of polysilicon projects. In the environment where the international financial crisis continues to spread, will newly-entered companies face greater risks in building lines now? How can those companies that are already "besieged" survive in the situation of downstream production reductions? Industry insiders said that only by improving technology and continuously reducing costs can we usher in a new round of hope when the market warms up. The market is sluggish but the prospects are bright. The cost of building lines now is low. In view of the fact that many companies are still testing the waters of the photovoltaic industry when the international financial crisis is developing in depth. Industry insiders have different opinions.: There is no doubt that the photovoltaic industry market has great potential. After the financial crisis and demand in the United States and Europe restarts, the demand for polysilicon will still be strong. Wang Tihu, general manager of Asia Silicon Industry (Qinghai) Co., Ltd., said in an interview with a reporter from China Electronics News that building a polysilicon production line is very risky in the short term, and the industry has different opinions on when the solar terminal market will pick up. Therefore, newly-entered companies must be fully mentally prepared. He also said that when infrastructure construction is carried out during an economic downturn, the prices of building materials and equipment are relatively low, so the construction costs are correspondingly much lower. Based on long-term expectations, after the photovoltaic industry develops, the demand for polysilicon will still be huge. Wang Junchao, deputy director of the 48th Research Institute of China Electronics Technology Group Corporation, told reporters that the financial crisis came relatively quickly, causing a greater impact on the polysilicon industry. Every company in the photovoltaic industry chain must re-examine its plans, investment payback period and break-even point, and make significant adjustments according to market changes. It should be noted that this industry will become brighter in the long run. Entrepreneurs who want to start a business will recognize this and choose to enter at this time, because the cost of building a factory will be relatively low when expanding during the trough. Judging from the five or six companies that produced new materials in China last year, through introduction, digestion, absorption and independent innovation, kiloton-level polysilicon production technology has been mastered by domestic companies, he said vividly.: “The kiloton-level window paper has been pierced, so once the production capacity is reached, the output of polysilicon will still be considerable. ” Cao Renxian, general manager of Hefei Sungrow Power Co., Ltd., said that many new entrants do not know much about the solar photovoltaic industry and are very blind. The international market has increasingly higher requirements for quality and performance. Therefore, the risks for latecomers are also increasing. Nowadays, there are too many homogeneous products. Newly entered companies must be clear about their competitive advantages and firmly grasp this advantage to gain a firm foothold. The most important thing is to improve technology and reduce costs. The small and full model does not advocate the production of polysilicon. Quality and cost are the key. Therefore, polysilicon companies should adjust their development pace, practice hard, stabilize the system, improve quality, reduce consumption, and respond to market changes. Wang Tihu said that the development of the polysilicon industry has gone through a process of natural elimination. Those small-scale, non-closed-loop systems, and low-tech companies will be eliminated in the waves. Only in this way can the industry continue to develop. He emphasized that large enterprises must adopt modern process systems and closed-circuit circulation systems, so as to reduce costs and not pollute the environment. In addition, polysilicon companies should form close alliances with downstream companies to keep abreast of the market pulse. On the premise of ensuring reasonable profits, polysilicon companies should no longer pursue huge profits. Everyone should share reasonable profits and survive the cold winter together. Wang Junchao emphasized that for future development, polysilicon companies will pay more attention to technology and cost. “The price of polysilicon has dropped by nearly 2/3, and will drop to more than 300 yuan per kilogram within three years, while the current domestic cost is around US$60. Therefore, if polysilicon companies do not improve their technology, have poor management, and do not control costs well, they will still suffer losses even if they reach production capacity in the future. In the future, the solar energy industry will only make every penny of profit. If an enterprise does not engage in technological upgrading and does not strive to improve conversion efficiency, it will still be ruthlessly eliminated in future competition. ”Wang Junchao said. Cao Renxian said that at present, the only way is to practice more internal skills, pay attention to the company's cash flow, save more money, seize the time to train internal skills, improve performance, improve one's key indicators, and make it more competitive. These tasks need to be done in normal times, but even more so in the context of a financial crisis. In view of the current efforts of some companies to extend their product lines and get involved in all aspects of the photovoltaic industry chain, industry experts also expressed their opinions. Wang Junchao believes that the small but comprehensive model is understandable from the perspective of the enterprise. The enterprise can do all the links and adjust in favor of whichever link is weak. But in fact, this approach is detrimental to industrial development. It may be temporarily beneficial to enterprises, but in the long run, it will restrict the development of enterprises. Because each enterprise has its own advantages, the advantages of different enterprises in the industrial chain can complement each other. Therefore, it is time to abandon the small and comprehensive model and strive to take the path of large and specialized. Wang Tihu also agrees with this view. He said that if the same company spreads its stall too large, its own advantages will be weakened, so in the process of exploration, companies should not lose their core competitiveness. The best way is for each enterprise in the industry chain to operate independently and highlight its advantages. It is difficult to establish an industrial alliance with specific operations. Wang Junchao said in an interview with a reporter from China Electronics News that it is time to form an industrial alliance. The domestic demand market will not start in the past two years, but this rapid price reduction trend will bring the cost of photovoltaic power generation closer to the practical cost - 1 yuan per kilowatt-hour. This will promote the development of the photovoltaic industry, thereby allowing * * Introduce some relevant incentive policies. He said that some large leading companies in each link of the industrial chain should be selected to build a framework for industrial alliances, formulate industry standards, and allow companies to self-discipline. Only in this way can we protect industrial development during the rapid expansion of the industry. This is very beneficial and very necessary for the development of national industries. He said that relying on a company or place * * It is unrealistic to organize an industrial alliance; * * We should come forward to unify the layout of the industrial chain and avoid duplication of investment. Ge Fei, CEO of Daqo Group Co., Ltd., also said that a platform for industrial alliances must be established. He believes that industrial alliances can start from three aspects:: First, paid transfer of technology ； Second, joint research and development on technical problems and forward-looking topics ； Third, promote it from the policy perspective, and relevant departments will coordinate and use domestic advantages to integrate enterprises. Many people in the industry have also expressed their doubts about industrial alliances. They believe that although the establishment of industrial alliances has a certain role in promoting the development of standardized industries, it is still difficult to implement. Wang Tihu told reporters that it would be easier to form alliances between upstream and downstream companies in the photovoltaic industry. Peer-to-peer companies, such as polysilicon companies, can also cooperate to explore cost reduction tips and process improvements, but this is difficult from a practical perspective because there is competition among peers. “Industrial alliances are a relatively popular approach abroad, but in China, their operability is relatively poor. Even so, attempts can be made, only between upstream and downstream enterprises, but it is hard to say how much effect it will have or to what extent it will be achieved. ”Cao Renxian said. Wang Zaiming, deputy chief economist of Jiangsu Zhongneng Silicon Industry, also told reporters that industrial alliances are necessary, but a bit divorced from reality. Technology is the vitality of every enterprise, and it is impossible for every enterprise to share its core technology with everyone. The establishment of an industrial alliance is more of a call for * * Give some policies and make some rational suggestions for the development of the industry, causing * * attach great importance to and promote the development of the industry. He emphasized that the solar photovoltaic industry has only started for a few years and is an emerging industry. * * Some supportive policies should be introduced. Although financial subsidies will not be given too much weight, other policies can be introduced.: For example, if the production cost of the entire industry is reduced, a large part of the production cost of polysilicon is electricity. Now the electricity price is very high. Enterprises can be encouraged to establish their own power plants, improve their own industrial chain, and reduce costs. Another example, * * The market for solar photovoltaic power plants should be launched. The bidding for the Dunhuang 10MW solar photovoltaic grid-connected power station project is a good start. If the pilot is successful, it should be promoted on a large scale in other regions.

Competition is a sign of market maturity! With the rapid growth of the solar cell market dominated by silicon wafers, the counter-crystalline silicon market has gradually matured and stabilized over a long period of time. Many manufacturers come to share this cake. It is also a powerful boost to China’s technological progress!