GCL-Poly determined to hold current polysilicon price, says chairman Nuying Huang, Taipei; Jackie Chang, DIGITIMES [Monday 1 October 2012] Market observers believe China's anti-dumping investigation against US- and South Korea-based polysilicon firms is likely to increase the price of domestic polysilicon supply. According to Gong Shan Zhu, executive director, chairman, and CEO of China-based polysilicon provider GCL-Poly, even if the investigation finds evidence of dumping, GCL-Poly will not increase polysilicon quotes.
Zhu emphasized that if Europe and the US abolish trade barriers, China's anti-dumping investigation will be terminated as well.
Europe has been conducting an anti-dumping investigation against China-based solar firms, and may consider starting an anti-subsidy investigation as well. China-based solar firms have demanded a retaliatory investigation against Europe-based polysilicon firms. China is the world's largest market for polysilicon and if the investigation finds evidence of dumping and subsidies, the price of polysilicon and solar wafers in China will likely increase. However, domestic polysilicon firms in China are likely to be the only benefactors.
Market observers noted that other domestic polysilicon firms will not be able to revive production if GCL-Poly holds prices at the current range. This strategy can also decrease the competitiveness of international polysilicon firms.
The current spot price of polysilicon is around US$20/kg and for many polysilicon firms, this price leaves no room for profits. However, GCL-Poly reported production costs for polysilicon at US$18.2/kg in 2012, and according to Zhu, the cost will continue to decrease. The low production cost is the reason that GCL-Poly has been able to continue operating within the current spot price.
Gong Shan Zhu, executive director, chairman and CEO of GCL-Poly