February 22, 2025

Due to the low price dumped by China, South Korea and South Korea, the birthplace of China's polysilicon

The European Commission recently issued an announcement to launch an anti-dumping investigation against Chinese photovoltaic cells. This is by far the largest trade lawsuit against China, involving more than $20 billion. This incident has made China's polysilicon industry in the "severe winter" worse, which means that many companies in China are facing the danger of huge losses or even bankruptcy. In the first Leshan City of Sichuan Province, which developed and produced polysilicon in China, the glory of the past was no longer. The market has plummeted and become a heartache that Leshan people do not want to mention. The trouble of the originator of polysilicon on September 5, Leshan City, the sun is shining, the heat has not yet dispersed. Located in the high-tech zone of Leshan City on the banks of the Dadu River, Sichuan Xinguang Silicon Industry Technology Co., Ltd. (referred to as “Xinguang Silicon Industry”) has closed more than half of its doors. The company began to suspend technical transformation in November last year. The original planned shutdown period was half a year. After the expiration, it announced that it would continue the technical shutdown of production suspension. Until the current production stoppage continues. On the other side of the road, the same company that produces polysilicon - Sichuan Ledian Tianwei Silicon Technology Co., Ltd. ("Ledian Tianwei"), also stopped production "implementation of technical transformation" in November last year, the closed door There is no one in the shadow, and only the new and stylish factory buildings and buildings stand in ruins. LeTV Tianwei, with a total investment of more than 2 billion yuan, will be suspended after less than two years of construction, starting from the forecast of an annual average after-tax profit of more than 600 million yuan, and a net loss of 15.48 million yuan in the first year after commissioning. The investors really hurt their hearts. "Leshan is the originator of China's polysilicon!" A person familiar with Leshan told the reporter of China Enterprise News about the history of Leshan polysilicon, and it is difficult to hide pride. He told reporters that Leshan polysilicon started early, during the "three-line construction" period in the 1960s and 1970s, moved to Leshan's Emei Semiconductor Research Institute (also known as Emei Semiconductor Materials Factory), focusing on the development of polysilicon. In the mid-to-late 1990s, they finally developed a new technology called "Improved Siemens Law", which broke the technical blockade of China by Russia, Germany and Japan. To this end, the person in charge of the institute became a national model worker and won the prize of 1 million yuan from the Sichuan Provincial Party Committee and the provincial government. At present, China's polysilicon enterprises are basically using the "improved Siemens method" production. Emei Semiconductor Research Institute not only provided technology for China's polysilicon production, but also trained a group of talents. I heard that the technical backbone of domestic polysilicon enterprises is more than Leshan. "Leshan has made great contributions to China's polysilicon!" said the person in charge. At the beginning of 2008, the price of international polysilicon surged, reaching 3 million yuan per ton at that time, and the cost was only 300,000 yuan or even lower. The lucrative profits, coupled with the support of the national industrial policy, have led to the entry of various capitals into the photovoltaic industry. There are hundreds of companies entering the photovoltaic industry in China, and there are only as many as 40 listed companies. As the birthplace of China's polysilicon, Leshan City is the most concentrated polysilicon enterprise. Naturally, it also places high hopes on polysilicon, and ranks it as the first pillar industry, as the “No. 1 Project” developed by the municipal party committee and the municipal government. So far, Leshan has gathered a number of polysilicon enterprises, and the number has reached six. Among them, Xinguang Silicon is the earliest 1000-ton production plant, and the products have reached the “electronic level” with the highest purity requirements; the Yongxiang shares of the private enterprise Tongwei Group have the largest scale, and have completed the production of 1,000 tons and 3,000 tons of polysilicon. Project, the third phase - the annual output of 6,000 tons of polysilicon project is under construction in Leshan County. The influx of many investors has led to a surge in polysilicon production capacity. China has become the world's largest producer of polysilicon, accounting for almost half of the world's global competitiveness. Most of the polysilicon produced in China is used for export. With the spread of the global financial crisis, especially the outbreak of the European debt crisis, China's polysilicon exports have been severely hampered, supply exceeds demand, and prices have fallen sharply. At the same time, in recent years, US and South Korean companies have taken advantage of government subsidies and huge concessional loans, and dumped polysilicon to China at a price lower than their cost. The price is as low as US$22 per kilogram, so as to continue to squeeze China's polysilicon. Limited market space for enterprises. The industry uses the "roller coaster" to describe the global polysilicon price in 2011: the mainstream price in the first half of the year still fluctuated around 90 US dollars per kilogram, and in November it has fallen below 30 US dollars per kilogram, while the production cost of most enterprises is around 35 US dollars. China's polysilicon enterprises have encountered unprecedented challenges. Many companies can't support it, but they can only stop the production of huge amounts of money, and watch the downstream manufacturers import a large amount of polysilicon. According to the data of China Nonferrous Metals Association, since the second half of 2011, China's polysilicon industry has experienced a serious inventory backlog. Only 8 of the 43 polysilicon enterprises that have been put into production are still under construction, and the rate of stoppage has reached 80%. At the moment, there are only five companies that can barely maintain production. The government supports disputes for the US and South Korea polysilicon enterprises to export a large amount of polysilicon products that are lower than their cost price to China, and continue to crowd out the limited market space of China's polysilicon enterprises. Recently, the Standing Committee of the National Committee of the Chinese People's Political Consultative Conference and the Executive Vice President of the New Energy Chamber of Commerce of the National Federation of Industry and Commerce Liu Hanyuan, Chairman of the Board of Directors of Tongwei Group, proposed to the relevant state departments "to conduct a "double-reverse" investigation on polysilicon production in the United States and South Korea as soon as possible". In this proposal, he pointed out: "The strong support of the US and South Korean governments for their domestic polysilicon enterprises has greatly increased their competitiveness in the international market, making it impossible for Chinese enterprises to compete with them." Liu Hanyuan believes that China should be confident Great support for the photovoltaic industry. He said that for many years, the polysilicon industry has been formulating market rules by international capital and large companies such as the United States and South Korea. They do not want to see Chinese companies develop and occupy half of the world, and they are expected to account for 70% in the next few years. Therefore, they used the huge subsidies and scale advantages they enjoyed, dumping polysilicon at a low price and at a loss, trying to kill Chinese enterprises and industries in the early stage of development. China should further recognize the strategic intentions of the US and South Korea in the "double-reverse" investigation and low-cost dumping, further increase the government's support in taxation, subsidies, etc., and give support to domestic enterprises in the early stage of development as soon as possible. Liu Hanyuan’s words conveyed the voice of the polysilicon industry. However, some domestic experts and scholars have different views on this, and believe that the government "should not save the market", so that the existing enterprises "the bankruptcy of bankruptcy, the integration of the integration." The technical revolution is urgent. In fact, regardless of whether the government rescues or does not save, China's polysilicon industry should be committed to technological breakthroughs, price reduction, and achieve "low cost, high efficiency." Because this is not only the need for the survival and development of polysilicon enterprises, but also the inevitable requirement for the prosperity of the photovoltaic industry. As an inexhaustible source of clean energy, why is solar power generation unable to be widely applied? The key is that it is expensive. In other words, high costs have blocked the development of the photovoltaic industry. When will the cost of photovoltaic power generation be lower than the cost of thermal power? How can photovoltaic power generation truly become market-oriented without relying on subsidies from governments? This has always been a topic of great concern in the industry. The sharp price cuts of polysilicon since 2011 have reduced the cost of photovoltaic power generation from 5-8 times that of coal-fired power to 1.5-3 times that of coal-fired power. Some experts pointed out that in the long run, the low-voltage photovoltaic industry is a rare opportunity for the market-oriented application of photovoltaic power generation. How to reduce the cost of solar power? This is a major event that all countries in the world are striving for. Our scientists and entrepreneurs are constantly exploring. Experts pointed out that most of China's polysilicon enterprises are stuck in the stage of extensive production and low competitiveness, coupled with excessive investment and overcapacity. In the case that the downstream industry is not yet complete, it has completed 10 in just 3-5 years. In the course of the year, it is inevitable to pay for the blindness. Only through continuous technological innovation can enterprises develop and grow themselves. Most people in the industry also believe that China's polysilicon enterprises can only get rid of the current predicament and create a way out through continuous technological innovation, open up the domestic PV market, and get rid of the drawbacks of walking on a single leg. At present, China's polysilicon production enterprises mostly adopt the "improved Siemens method" purification technology, which has high cost, high energy consumption, and low level of repeated construction. It is already at a disadvantage in the whole international competition, which not only leads to high process cost and environmental cost. It also makes the production of polysilicon become the biggest bottleneck restricting the development of China's photovoltaic industry chain. It is understood that the cost of producing polysilicon in the domestic "improved Siemens method" is about RMB 200,000/ton, and the spot price is already lower than the cost of many factories. Even if the polysilicon is purchased at a low price to produce photovoltaic cells and components, downstream companies are still unprofitable. Insiders pointed out that if the sales price of polysilicon can be reduced to less than RMB 120,000/ton, the cost of photovoltaic power generation can be lower than that of thermal power generation. However, the cost of 120,000 yuan / ton is unmatched by existing polysilicon enterprises. The good news is that there is news that the PM-based solar-grade polysilicon purification technology developed by a company in Shanghai has a unit energy consumption of only 12 kWh/kg without any pollution. The comprehensive cost is only RMB 74,000. The investment scale of tons and 10,000 tons of factories is only 800 million yuan. As PM polysilicon enters mass production, the price of solar grade polysilicon will rapidly drop below 100,000 yuan / ton. If this news is true, it will revolutionize polysilicon production. In addition, the thin-film solar cell, which is known as the "up-and-coming star", is also catching up with the crystalline silicon battery in terms of improving conversion efficiency, and is constantly challenging the dominance of crystalline silicon cells because its price is much lower than that of crystalline silicon cells. It is understood that the thickness of the silicon wafer required for the manufacture of the crystalline silicon battery is 200 micrometers, and the thin film battery is formed by depositing elements of photoelectric properties such as silicon on materials such as glass and plastic , and the thickness thereof is often only a few micrometers, so the raw material is very saved. At present, the conversion efficiency of crystalline silicon battery components is maintained at 16%, and it is expected to reach about 18% in the future. The conversion efficiency of the cadmium telluride thin film battery produced by the US First Solar Company has reached 12%, which is remarkable. The technology is still evolving and it is expected that by the end of 2014, its conversion efficiency will reach 15% or even 17%. If realized, it will put tremendous pressure on the crystalline silicon battery companies.  

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