Polysilicon (Solar Grade) Overview Transcript
Polysilicon is derived from metallurgical grade silicon and sits on top of the photo-voltaic supply chain.
1MW of photo-voltaic power requires 7 tonne polysilicon material.
Polysilicon is traded in rods, chunks and granules.
Tier One suppliers from Germany, the US, South Korea and Japan account for two-thirds of the world’s supply, with Chinese producers making up the remaining share.
China is a major polysilicon buyer and seller in Asia, whereas the US is central to the global polysilicon supply chain as a key exporter.
Government’s solar incentives have provided the corner stone of sector growth in recent years.
However, the polysilicon market is heading to structural overcapacity as aggressive cuts in solar incentive in Germany and other European countries have triggered a decline in the solar market.
Chinese policy makers will also face a decision to stimulate their domestic market even more than planned to support their globally dominant manufacturing base.
The outlook for the mid to longer term is seen as buoyant however thanks to rising demand from China the world’s top energy user. This is also evident in the massive expansion of polysilcon output globally.