Xinjiang Daqo polysilicon project reaches full production ahead of schedule. Domestic polysilicon production capacity is expected to increase by 100,800 tons in 2019

On December 18, 2018, Xinjiang Daqo New Energy Company announced that the 3B polysilicon project originally planned to reach production in the first quarter of 2019 has now reached full production, with a total production capacity of 30,000 tons per year.

According to Zhang Longgen, CEO of Daqo New Energy Company, after the 3B polysilicon expansion project reaches full production ahead of schedule, it will continue to promote debottlenecking projects after 3B and is expected to increase its annual production capacity to 35,000 tons. At the same time, the 4A polysilicon production expansion project is also underway, and the overall production capacity will be increased to 70,000 tons per year after full production in the first quarter of 2020.

Looking back at the overall situation of the polysilicon market, according to data reported by EnergyTrend, the new energy research center of TrendForce, there were 10 polysilicon companies in China with a production capacity of more than 10,000 tons in 2017. Domestic polysilicon production Reaching 240,000 tons, as of the end of April this year, domestic silicon material production capacity has reached 302,000 tons. After the 531 Photovoltaic New Deal, domestic photovoltaic companies had to adjust operating rates and production capacity planning progress due to market downward pressure. However, there are still polysilicon companies whose production capacity exceeds expectations. Although the start-up time of the company's expansion project has been delayed, the production capacity release is higher than the original plan.

Data from the Silicon Industry Branch shows that new polysilicon production capacity in the second half of the year includes: Xinjiang GCL 60,000 tons/year (put into production on October 28), Inner Mongolia Tongwei 25,000 tons/year (October 30) Put into production), Sichuan Tongwei 25,000 tons/year (put into production in November), Xinjiang Daqo 30,000 tons/year (full production in December), Oriental Hope 15,000 tons/year (put into production before the end of the year), Asia Silicon Industry 5,000 tons/year year (put into production before the end of the year), etc. According to the production expansion plans of leading domestic polysilicon companies, coupled with the increase in production capacity of other polysilicon companies, by the end of 2018, China's polysilicon production capacity will have increased by approximately 150,000 tons, and polysilicon production capacity will reach 408,000 tons, a year-on-year increase of 132,000 tons. By 2019, it is expected that the new planned production capacity will be 100,800 tons, and the production capacity will reach 508,800 tons by the end of 2019. Therefore, judging from the current progress of Daqo Polysilicon reaching the standard ahead of schedule and the production status of GCL and Tongwei, the production capacity release and expansion progress of leading polysilicon companies have exceeded expectations. Future polysilicon price changes will not only be affected by downstream market demand, It also depends on the company's control over polysilicon production.

TrendForce New Energy Network