Chinese polysilicon producers are ramping production to meet domestic demand ahead of expected import duties being imposed on polysilicon imported from the EU, US and South Korea, according to reports.
After the European Commission imposed preliminary anti-dumping duties on Chinese made PV modules in early June, the Chinese government restarted its investigation into polysilicon dumping allegations brought by the likes of GCL-Poly last year, when prices continued to plummet, due to market overcapacity.
Reports state that the Chinese government is also looking at whether to impose retroactive duties, which led to a drop in imported polysilicon into China from March to May.
However, many leading Chinese module manufacturers were said to have stockpiled the typically high-grade polysilicon produced outside China to alleviate possible supply shortages and purity requirements.
As first reported by PV Tech, small polysilicon producer, Daqo New Energy, said in June that it had successfully started the production ramp of its Xinjiang polysilicon facility, while its Wanzhou plant was still undergoing upgrades to lower production costs. The company guided increased polysilicon shipments in the second quarter to 920MT.
Reports said that China’s largest polysilicon producer, GCL-Poly, was also ramping production, though no details were provided.
GCL-Poly had reported in May 2013 that its polysilicon production levels were approximately 8,653MT in the first quarter, a 29.2% decline from the same period a year ago. The company did not provide production guidance for the second quarter.
ReneSola has also recently announced it had resumed polysilicon production after upgrades to lower production costs, though the company uses the polysilicon for internal wafer production for its PV modules.
The move by the Chinese to investigate polysilicon pricing was in retaliation to the US imposing duties on Chinese-made solar cells, after an anti-dumping investigation. The investigation was subsequently put on hold until the EC had declared preliminary duties.