SHANGHAI, Dec 6 (SMM) - The output of polysilicon stood at around 93,100 mt in November, up 9.66% on the month, according to SMM statistics. The previous polysilicon supply deficit was no longer a concern with the sustainable growth of domestic polysilicon output.
According to SMM survey, polysilicon producers still acquired high profits in November thanks to the high profitability of polysilicon. Generally, the enthusiasm for production was high. The operating rates of top-tier companies basically remained above 90%, such as Tongwei, Xinjiang TBEA, and Daqo Group. In addition, many enterprises maintained 100% operating rates or even produced at more than full capacity. The production ramp-up of newly-commissioned production lines in Qinghai Lihao and Leshan GCL contributed to most of the growth in output, while the maintenance of Tongwei’s production lines in Inner Mongolia caused a loss of about 3,000 mt in total output.
In November, the capacity of domestic polysilicon was about 35.8GW, and that of silicon wafers was about 36GW. Considering that some of the domestic polysilicon supply was imported in November, the domestic polysilicon market was actually in a surplus. According to SMM survey, the domestic polysilicon stocks have been on the rise until now, with total in-plant inventory stood at nearly 15,000 mt. This partly explains the sharp drop in the polysilicon prices.
As for the market outlook, the profitability of polysilicon will continue to boost the production enthusiasm among enterprises. At the same time, new capacity will be put into production and the production of Tongwei in Inner Mongolia will recover soon. Therefore, the domestic polysilicon output in December is estimated at 104,000 mt. On the other hand, the weakening downstream demand and the cost pressure on silicon wafer plants will result in a decline over 10 percentage points in the operating rates in December. In this case, the polysilicon inventory is likely to rise further.