Frbiz Predicts China's Polysilicon Market Trend

Jun 08, 2010, 10:00 ET from Frbiz.com

BEIJING, June 8 /PRNewswire-Asia/ -- Frbiz.com, one of China's leading B2B search platforms, predicts China's polysilicon market trend.

Frbiz analyzes that the euro depreciation has had a certain impact on the PV industry, but the impact is not large, and it is expected that within the next two years the domestic polysilicon market will see a downward trend in prices.

In polysilicon prices, Frbiz forecasts that with the effect of scale and key technological breakthroughs, the cost of polysilicon materials will greatly reduce, although energy prices see a rising trend, but the overall cost will see a decrease. Also, because the domestic steel market demand and market supply in China are insufficient, the price of polysilicon will not decrease immediately.

Although in the second half of 2009, the European PV market gradually recovered, orders increased and the main end-market demand for PV products has increased to reverse the situation of supply exceeding demand, but the financial crisis impact on the PV industry will not totally disappear in the short term. Market competition is fierce, and the price of PV modules decreasing is still the most important risk factor that a company will face.

Frbiz analyzes with countries set to improve the access threshold for polysilicon industry, within the next 1-2 years, the domestic market will have several large enterprises with strong power production capabilities, and some small enterprises will be eliminated. Overall, polysilicon production capacity will lag behind demand growth rate.

In addition, in regards to the recent electric power price increases forecast in the market, Frbiz analyzes that water and electricity price increases have little effect on the power transmission industry. Energy costs account for a very small proportion of the costs; but in the new energy polysilicon industry there is a great influence, because energy costs account for about 40% of the cost, electricity cost accounts for 20-30%, if water and electricity prices increase it would make the cost rise; electricity price rises have little effect on the wind power industry.

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