Daqo polysilicon demand hit by 'significant rise' in ASPs
- Significant polysilicon manufacturer Daqo New Energy has been compelled to revise down assisted polysilicon sales quantities in the 3rd quarter of 2020, as a result of customers delaying investing in orders as market prices hit US$ 12.5/ kg.
Daqo said that polysilicon sales to exterior clients during the 3rd quarter of 2020 were approximately 13,643 MT, compared to previous guidance of around 17,000 MT to 17,500 MT.
Market ASPs for mono-grade polysilicon were presently claimed to be in the range of about US$ 11.5/ kg to US$ 12.5/ kg, compared to ASPs in the variety of US$ 7.0/ kg to US$ 7.5/ kg in the 2nd quarter of 2020.
In previously launching its Q2 2020 economic outcomes, Daqo had actually stated that its very own polysilicon ASPs had been in the series of US$ 12/kg, after having remained in the US$ 6.0/ kg variety in Q1 2020.
The weak than expected need from mainly China-based wafer manufacturers and incorporated PV manufacturers indicates downstream PV nuclear power plant projects have actually become significantly sensitive to financial viability when polysilicon ASPs are in the US$ 12/kg variety. This has a straight negative influence on wafer and cell ASPs.
The business claimed in a statement: "The significant surge in ASPs, especially in September, created post ponement of purchasing orders from some clients. Nevertheless, entering into October, the Company is seeing orders and item deliveries resuming to typical levels. We expect the stock built up briefly in September will certainly be offered in the 4th quarter, as we expect to see strong end-market need both domestically and abroad."
Daqo additionally stated that another round of upkeep had actually been completed as well as polysilicon manufacturing was back to complete capacity in August, with production in Q3 2020 being around 18,406 MT, surpassing previous support of 17,500 MT to 18,000 MT.
The company directed that total manufacturing costs as well as money costs in the 3rd quarter were anticipated to be about US$ 5.82/ kg as well as US$ 4.88/ kg, specifically. Daqo previously reported that its polysilicon typical total production price was US$ 5.79/ kg in Q2 2020.
ASPs in the 3rd quarter were expected to be around US$ 9.13/ kg, compared to US$ 7.04/ kg in the second quarter of 2020.
Polysilicon manufacturing support for the complete year was raised and also in the range of 75,000 MT to 76,000 MT, up slightly from previous assistance of 73,000 MT to 75,000 MT.
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