Polysilicon Supply Rose Instead of Falling in August amid Power Rationing, Why Is That?

SHANGHAI, Sep 2 (SMM) - The output of polysilicon stood at around 61,900 mt in August, up 5.99% on the month, according to SMM statistics. Domestic polysilicon production finally reversed the previous downward trend for two straight months and rose in August as the production growth outweighed the reduction.

SMM learned that the output cut in August was mainly caused by the power rationing in Sichuan province.  Three polysilicon plants, naming Leshan GCL, Sichuan Yongxiang and Yongxiang New Energy reported far less-than-expected production with a collective fall of 5,000 mt. In addition, the output of some manufacturers in the central and eastern regions of China also declined to a certain extent due to the influence of local policies.

The additional output, on the other hand, was contributed by the resumed capacity from maintenance as well as new capacities ramping up the production. Xinjiang Daquan, GCL and Inner Mongolia Xinte resumed the production in August, while Inner Mongolia Tongwei and Qinghai Lihao saw their production ramped up. On the whole, the output growth has clearly outpaced the power rationing-induced production reduction. In addition, the pandemic in Xinjiang has weighed on local transport ion that the "vehicles are prohibited from entering the factory area", while the production has largely remained normal. 

SMM believes that polysilicon supply will rise significantly in September. First of all, the manufacturers in Sichuan will gradually resume normal production after the power rationing ends. On the other hand, producers like East Hope, Qinghai Lihai, Baotou Xinte will keep raising the operating rates of resumed or new capacities. The polysilicon output is estimated at 75,000 mt in September, up 21% MoM, significantly easing the domestic supply tightness.