The integration of polysilicon industry is unavoidable

In 2009, half of China's polysilicon market depended on imports, and the same situation was expected to continue in 2010. 2009 China's polysilicon production of about 15,000 tons, and the actual market demand for nearly 40,000 tons, more than half are imported. China's polysilicon production is expected to reach about 35,000 tonnes in 2010, but this output can only meet the 2010 demand of China's polysilicon market, nearly 30,000 tons of market gap, still need to import. The growth of domestic polysilicon demand has a great relationship with the start-up of PV power plant construction in the past 2009 years. At the same time, the international market of polysilicon prices began to gradually return to rationality, market competition back to quality and price competition.　　Some of the domestic production cost of low-end capacity is not market space, the market shortage of high-end capacity. At present, China has become the world's largest producer of solar cells, but there is a huge crisis behind the boom.　　With the rapid expansion of domestic solar industry capacity, the industry has been on the list of limiting overcapacity many times since 2009. In order to inhibit the construction of low-end capacity duplication to ensure the healthy development of polysilicon industry, "polysilicon Industry access standards" is being developed. Since the State Council issued "on the suppression of some of the industry overcapacity and repeat construction, guide the healthy development of the industry," a number of views on the polysilicon industry "surplus" has been controversial, "the Polysilicon Industry access standards" to some extent, the government's determination to curb the repeated construction of polysilicon industry. Because the various ministries to the POLYSILICON threshold admittance standard cannot reach the agreement, causes the standard to delay to launch. The National Development and Reform Commission and the Ministry of Industry, Science and Technology department and other departments of the dispute focus on polysilicon consumption indicators. National Development and Reform Commission to restore electricity consumption of 60-kilowatt hours/kg, but the Ministry of Industry, Science and technology, said that should be set at 80-kilowatt/kg, the two sides difficult to coordinate, so the standard difficult to introduce. At present, the domestic refining of polysilicon power consumption than electrolytic aluminum is higher. Other manufacturing aspects of solar cells demand higher power. In the process of solar cell processing, there is an intermediate process called slicing. In addition to cutting equipment to electricity, air compressor, freezer, etc. also need to power consumption. For example, cutting a piece of 22 kg of polysilicon will use 640 degrees of electricity. In order to promote the development of polycrystalline silicon, the Ministry of Industry is implementing the polysilicon industrialization bidding, scientific research methods, the production capacity of more than 3000 tons of large-scale polysilicon projects. Guangzhou Securities and forestry figures according to Nanjing Customs data, this January-February, the Jiangsu Port Polysilicon imports surged, the import of polysilicon 1752 tons, the year-on-year growth of 2.2 times times; the average import price is 48.2 USD/kg, down 30.7%.　　The influx of low price polysilicon abroad will seriously impact the solar industry as one of the emerging strategic industries. 2009, Jiangsu Solar PV industry accounted for 70% of the national solar cell production, solar PV exports 5.49 billion U.S. dollars, down 15% year-on-year, the decline is more than 4.3% of the average decline in High-tech products, which component price declines closer to 50%. Behind this fall, Jiangsu's main solar energy companiesProfit margins remain at a good level, with many companies planning to expand capacity in 2010. On the other hand, at the back of the polysilicon import, more than 80% of the imported enterprises are foreign-invested enterprises. Nanjing Customs data show that the foreign-invested enterprises in Jiangsu Port in January-February imported 1469.9 tons of polysilicon, increasing 1.7 times times, accounting for 83.9% of the total number of polycrystalline silicon imports.　　This suggests that the solar industry remains the "two-pronged" industry in which raw materials are imported and products are exported. At present, the polysilicon production cost of large enterprises in the industry is about 35~50 USD/kg, and a small number of small and medium-sized enterprises are producing cost up to 70~80 USD/kg, while the lowest production cost of seven international manufacturers can be controlled in 15~20 USD/kg, and once represent the world's advanced level, the group of Seven China's existing polysilicon manufacturers will face huge losses.