SHANGHAI, Oct 12 (SMM) - According to SMM statistics, the domestic silicon wafer output in September stood at about 31GW, an increase of 18% month-on-month, rising for the second consecutive month. Why has the domestic silicon wafer output soared? Will the supply of polysilicon continue to be in shortage?
Domestic polysilicon rose in September for several causes: First of all, with the increase in the supply of domestic polysilicon, the production of silicon wafer was no longer choked by polysilicon shortage. The polysilicon output amounted to 76,200 mt in September, up 23% MoM. Meanwhile, the elimination of bearish factors like the power rationing and earthquake also boosted wafer production. It is understood that top-tier silicon wafer manufacturers maintained an operating rate of 75-85%, and some second and third-tier ones even achieved full production due to robust downstream demand.
It can be seen that the supply shortage of polysilicon eased significantly in September. However, polysilicon was still in short supply and the prices are unlikely to pivot this month with the October ling-term order prices turning out to be stable. Nonetheless, polysilicon is expected to see oversupply soon with the rapid release of new capacities, when the prices will encounter a real pivot.
