New forces are rising, old leading companies are showing off their power, and a new round of reshuffle in the photovoltaic industry chain is brewing.
Thread Content
At present, the price of silicon materials has surged from 238 yuan/kg at the beginning of the year to 305 yuan, once again exceeding market expectations. Under the wave of rising prices, silicon material companies have signed long-term orders worth 100 billion, silicon wafer companies have plans to expand production beyond 1161.1GW, new forces are emerging, old leading companies are showing off their power, and a new round of reshuffle in the photovoltaic industry chain is brewing. In recent years, amid concerns over the continued supply of silicon materials, the battle to “guarante supply” in the market has intensified. According to statistics from Polaris Solar Photovoltaic Network, the total number of long-term silicon material contracts signed since 2020 has reached 3.86251 million tons. Among them, the total signed volume of silicon materials in 2020 reached 855,300 tons. ； The total contracted volume of silicon materials in 2021 is 1.71591 million tons, a year-on-year increase of 100.62% ； In just over 7 months in 2022, the total number of long-term orders signed has reached 1.2913 million tons, accounting for approximately 75.2% of the total long-term orders in 2021.
Hidden behind the frequent signings of large orders is the market battle among silicon giants. As the silicon material production capacity of cross-border companies such as Hesheng Silicon Industry, Baofeng Group, Runyang, and Jingnuo are about to be released in 2023, the battle to defend the old silicon material leaders has become increasingly fierce. According to data from the Silicon Industry Branch, 90% of the silicon material in the entire market in 2021 and 2022 is locked in long-term orders, and only 10% of the loose orders are traded through bidding. It is worth mentioning that since GCL signed a five-year long-term contract order exceeding 20.45 billion yuan, it broke the market’s three-year long-term contract norm. ； Tongwei signed a 6-year long-term agreement of 64.41 billion yuan, once again refreshing the length of the long-term agreement ； Recently, Tebian signed an eight-year long-term agreement, and the record has been broken again. As the term of long-term agreements lengthens, the market space left for new entrants will be further compressed in the future.
Looking specifically at companies, since 2020, Tongwei has the largest total number of long-term silicon material contracts, reaching a total of 1.2932 million tons. Among them, the total number of contracts signed in 2022 is the largest, with long-term silicon material orders of up to 1.0594 million tons signed with Meike Silicon Energy, Shuangliang Energy Saving, and Yunnan Yuze respectively. Xinte Energy ranked second in the number of long-term silicon material contract contracts, with the total number of long-term contract contracts reaching 1.05505 million tons. ； GCL-Poly ranked third in terms of long-term contract signing volume, with a cumulative contract volume of 785,150 tons. ； Daquan's long-term contract volume was 785,150 tons, ranking fourth. As the orders on hand of enterprises continue to increase, in order to ensure the supply of raw materials, the expansion of production capacity of enterprises is accelerated simultaneously. For details, see (Old Enterprises "Return" to the Silicon Materials Battlefield and a New Round of Shuffle is Coming). However, for the polysilicon-heavy asset industry, rapid expansion of production capacity will not only test the company's technical strength, but also its financing ability. As the domestic financing environment continues to improve, except for Tongwei, which listed on the Shanghai Stock Exchange as early as 2004, the other four silicon giants have accelerated their pace of returning to A-share listings. In July 2021, Daqo Energy listed on the A-share market and raised approximately 6.4 billion yuan through IPO to plan and construct a high-purity semiconductor material project with an annual output of 1,000 tons and a solar photovoltaic polysilicon project with an annual output of 35,000 tons. In May this year, GCL Technology stated that it was considering the feasibility of an A-share listing. On June 29, Xinte Energy announced that its A-share listing was accepted, and it is one step closer to listing. Other well-established silicon companies at home and abroad, such as Asia Silicon Industry, which has long-term contracts with a total contract volume of 169,810 tons, OCIM, 77,700 tons, and WACKER, 70,000 tons. In addition, Concentrator Silicon Industry acquired by Risen Oriental also signed a 50,000-ton polysilicon sales contract worth 6.4 billion yuan with Shanghai Machinery CNC, with output locked until 2024.
It has already broken out, and now the policies are favorable