Strong demand for polysilicon; imports reached nearly 20,000 tons in half a year

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Demand for polysilicon is strong; imports reached nearly 20,000 tons in half a year. Publication date: July 26, 2010. Source: Phoenix Finance. According to the latest customs data, domestic polysilicon imports in June 2010 were 3,784 tons, representing a 14.9% increase on a month-on-month basis and a 208.1% increase on an annual basis. From January to June, the total domestic import of polysilicon was 19,330 tons. 　　 According to the \"Report on Investment Analysis and Future Prospects of China’s Polysilicon Industry from 2010 to 2015\" released by CIC Consulting, China’s cumulative polysilicon imports in the first five months of 2010 amounted to 15,500 tons, representing a 121.9% increase compared to 7,007 tons in the same period last year. On a monthly basis, China’s imports of polysilicon from January to May 2010 were 3,158 tons, 2,647 tons, 3,239 tons, 3,280 tons, and 3,222 tons respectively, remaining at high levels compared to the same period last year. 　　Jiang Qian, the leading researcher in the new energy sector at CIC Consulting, noted that China’s total imports of polysilicon in 2009 were around 20,000 tons; in the first half of this year, this figure already reached 19,330 tons, approaching the level for the entire previous year. Behind this is the ongoing growth of the global photovoltaic market, as well as the explosive increase in the shipments of solar cells and modules by domestic manufacturers, which in turn drives strong demand for the upstream raw material, polysilicon. 　　 Since 2010, as the global economy has gradually recovered, coupled with the growing impact of various countries’ aggressive policies to promote solar energy, the photovoltaic industry has shown a strong recovery trend. The latest statistics show that global shipments of photovoltaic modules in the first half of 2010 were around 7 GW, which not only far exceeds the annual installation levels prior to the financial crisis but is also on par with the global capacity added last year. 　　 Jiang Qian pointed out that, given that Chinese photovoltaic manufacturers hold over 40% of the market share, the output of photovoltaic modules by domestic manufacturers last year should have been over 3 GW. Taking JA Solar as an example, in the first half of this year the company produced 582 MW of solar cells, sold the same amount, and generated revenue of 6 billion yuan, representing a 500% increase on a year-on-year basis. The company’s total delivery volume for the entire year of 2009 was 509 megawatts. And while domestic polysilicon production capacity has not yet been fully utilized, the huge demand gap can only be met through imports. Therefore, it is not hard to understand why domestic polysilicon imports reached 19,330 tons in the first half of this year, a figure close to that of the entire previous year. 　　Behind the strong market demand is the upward trend in polysilicon prices. Since March 2010, prices of photovoltaic products have been rising globally. Taking solar cell prices as an example, the average global price of solar cells in the first quarter was around 1.3 euros per watt, but by the end of June it had risen to 1.42 dollars per watt, representing a nearly 7% increase on a month-on-month basis. As a result, the current spot price of polysilicon in China has risen from 410–415 yuan per kilogram in April to 425–445 yuan per kilogram.