Wacker's polysilicon sales slump to new historical low

• Major polysilicon manufacturer Wacker Chemie has actually reported polysilicon sales of EUR152.5 million in the 2nd quarter of 2020, a brand-new reduced, because of weak need as well as reduced exercise rates, leading to losses of EUR35 million for its polysilicon division.

Wacker remains to be influenced by China's efforts to end up being completely self-dependent in the manufacturing of high-purity polysilicon for the solar market, coupled with suppressed upstream need with polysilicon average asking price continuing to be at traditionally low degrees. Just makers with brand-new sophisticated polysilicon plants are profitable, however margins have been worn down.

Wacker reported polysilicon sales of EUR152.5 million in the 2nd quarter of 2020, down around 10% from the previous year duration. However, Q2 2020 revenue reached a brand-new business record low.

The firm slumped to a EUR35 million loss due to demand and also ASP issues, additionally impacted by reduced polysilicon plant exercise prices. A year ago, Wacker had actually pursued a plan of complete utilisation rates as it bet unsuccessfully on polysilicon ASPs climbing and also being able to market with higher inventory levels at greater margins on the back of strong demand. EBITDA was likewise impacted in the reporting quarter because of more decreases in inventory appraisal adjustments.

Its profits margin was -22.9% in Q2 2020, contrasted -7.4% in the previous quarter.

Wacker had previously claimed that its polysilicon division would make losses on the same level with those in 2019, regardless of price cutting actions. However, losses are currently greater than those embeded in the first half of 2019.