Polysilicon prices return to scale and cost of enterprises

December 19th afternoon, Inner Mongolia, Hohhot. Northern winter sun and cold wind, Inner Mongolia Shenzhou Silicon Industry Co., Ltd. (hereinafter referred to as the Shenzhou silicon industry) construction site in full swing. "A total of 1500 tons of polysilicon project construction has been completed by the end of 2009, the first half of is expected to be able to stabilize the product. Jiang Wen, general manager of the Shenzhou silicon industry, told reporters. This is only part of China Aerospace Science and Technology Group's grand plan of the Shenzhou silicon industry, while the listed company aerospace Electromechanical, also holds a 29.43% stake in the Shenzhou silicon industry. Even if the economic crisis is chill, and the price of polysilicon, from the highest $500 per kilogram to the current $150, but Jiang Wenzheng said, the two phase will only accelerate, will not slow down". At the same time, there is news that part of the fast on the polysilicon production projects, in the case of financial constraints and product prices plummeted, the project is facing a slowdown.

At the end of 2007 the most prosperous period, the price of polysilicon was as high as its cost of 9 times, which also contributed to the following year, the barbaric growth of the domestic polysilicon industry. The cost of foreign polysilicon, between $30 to $40, while the cost of domestic, between $40 to $50, the current price is returning to reason. Aerospace Electrical chairman Qu Yan said. The industrial integration, has also been talked about at this time. Qu Yan said that the current high cost of solar power, the fundamental reason is that the price of polysilicon is too high, and once experienced "grab the speed of industry after puberty" scale and cost advantages will be about to the enterprise.

Happy polysilicon

2010 may be a watershed, after the production capacity can be released out of the enterprise, will enjoy the industry boom. Running in the back, it is possible to be integrated. "Sealand securities predicted in its report before 2010, polysilicon strong demand in the construction of the capacity is not immediately released, even if prices drop slightly, but the rate of decline is limited, therefore, has the scale of output of polysilicon producers in 2010, the first to benefit from this round of industry boom boom peak".

Grab speed became the key words of the domestic polysilicon industry, and in 2009 has become the beginning of the release of a large number of production capacity.

From last August to start now, the construction cycle took only 16 months, and in accordance with international practice, generally takes about 3 years. Jiang Wen told reporters.

Chinese solar industry development the biggest constraint is, "according to the solar power can be used for 25 years, the current cost of electricity per kilowatt hour up to 4 yuan, in the absence of China government subsidies, the price is too high. Insiders told reporters.

In 2007, for example, China's production of 1180 megawatts of solar cells, of which exports reached a total of more than 1000 megawatts, more than 90%.

Germany, the United States, Japan, in terms of policy guidelines for solar power, put forward more specific and effective measures, but also makes these three countries become the main export direction of China's solar energy industry.

Affected by this, China's photovoltaic industry in recent 5 years, the average annual growth rate of nearly 50%,

2007 China has become the world's largest producer of solar energy, accounting for 26.6% of global production. In 2007 the world's top 16 solar cell companies, China has occupied a total of 6.

In contrast, the domestic demand is quite weak Chinese. The development of China's solar power market is extremely slow, in 2007 the cumulative installed capacity of only 100 thousand kilowatts, less than the global average of 1%.

Integrator survival

The financial crisis hit, the development of polysilicon and photovoltaic industry downstream, adding a lot of variables.

Launched polysilicon project, especially private enterprises, in the current economic situation, once the financing can not keep up, it will slow down the process. "

Xu Jie, chief financial officer of the Shenzhou silicon industry pointed out that due to the current financial crisis, is expected to reach the balance of polysilicon supply and demand in 2010, is likely to be delayed until 2012. "

On the other hand, it is the price of oil and coal and other traditional energy, so that the urgency to develop new energy to ease.

"There is a large domestic photovoltaic production enterprises, before the lock by a long list of its raw material polysilicon prices. This is when the polysilicon prices soared, is its advantage. But now, the long single is a drag on the company a lot. An unnamed industry insiders told reporters.

In this context, open up the upstream and downstream industry chain, is the right way.

Aerospace machinery, for example, its stake in the Shenzhou silicon industry, it is out of polysilicon and photovoltaic industry to consider.

In December 17, 2008, aerospace electromechanical announcement, said the new energy photovoltaic industry chain to build a complete, improve the company's profitability, and promote the sustainable development of the company, to raise funds through a rights issue 1 billion yuan capital of Shenzhou silicon industry, and before this, has its own funds to the aerospace electromechanical Shenzhou silicon industry first increase 200 million yuan, at present, the listed company merger holds 29.43% stake in the Shenzhou silicon industry.

Photovoltaic plate is one of the three carriages of aerospace machinery and electronics, but due to the downstream industry, the impact of the upstream polysilicon raw material prices rose significantly, the gross margin showed a trend, but also affected the company's orders to undertake.

The cost of solar cells, more than 50% of the cost of polysilicon, now open up the industry chain, will also cost down. General manager of aerospace electromechanical left told reporters.

According to Jiang Wenzheng introduced to 80 U.S. dollars per cubic meter