Wacker’s polysilicon sales slump to new historical low

Facebook
Twitter
LinkedIn
Reddit
Email
Wacker reported polysilicon sales of €152.5 million in the second quarter of 2020, down around 10% from the prior year period. However, the Q2 2020 revenue reached a new company record low.

Major polysilicon producer Wacker Chemie has reported polysilicon sales of €152.5 million in the second quarter of 2020, a new low, due to weak demand and lower utilisation rates, resulting in losses of €35 million for its polysilicon division.

Wacker continues to be impacted by China’s efforts to become fully self-sufficient in the production of high-purity polysilicon for the solar industry, coupled with suppressed upstream demand with polysilicon average selling prices remaining at historically low levels. Only manufacturers with new advanced polysilicon plants are profitable, but margins have been eroded. 

Wacker reported polysilicon sales of €152.5 million in the second quarter of 2020, down around 10% from the prior year period. However, Q2 2020 revenue reached a new company record low. 

The firm slumped to a €35 million loss owing to to demand and ASP issues, further impacted by lower polysilicon plant utilisation rates. A year ago, Wacker had pursued a policy of full utilisation rates as it gambled unsuccessfully on polysilicon ASPs rising and being able to sell through higher inventory levels at higher margins on the back of strong demand. EBITDA was also impacted in the reporting quarter due to further reductions in inventory valuation adjustments.

Its earnings margin was -22.9% in Q2 2020, compared -7.4% in the previous quarter.

Wacker had previously said that its polysilicon division would make losses on par with those in 2019, despite cost cutting measures. However, losses are already higher than those set in the first half of 2019. 

Read Next

September 22, 2022
JA Solar has been promoted to AAA-Rating status for the first time, joining LONGi Solar and Trina Solar in this exclusive bankability ratings, now recognised widely across the PV sector as one of the most accurate and detailed ranking systems on offer to PV module buyers when undertaking supplier due diligence.
September 13, 2022
JinkoSolar has signed two major polysilicon supply contracts worth nearly US$30 billion in the past two weeks as it looks to lock in supply.
September 7, 2022
Module manufacturing major Risen Energy has posted strong revenue and profit figures for the first half of the year, driven by a large increase in product sales and unit sales prices.
PV Tech Premium
August 26, 2022
The average price of polysilicon rose again this week, marking the 28th round of prices increases this year alone, according to data released by China’s Silicon Industry Association.
August 24, 2022
The Chinese government has issued a notice to its PV industry that calls for the optimisation of the sector and further buildout of its infrastructure while warning against hoarding products and the establishment of solar monopolies.
PV Tech Premium
August 18, 2022
The average price of silicon materials in China continued to rise this week after power rationing was implemented in key Chinese provinces following extreme heat in much of the country

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
September 27, 2022
15:30 AEST (UTC +10)
Solar Media Events
October 4, 2022
New York, USA
On-Demand Webinars, Solar Media Events
October 11, 2022
Virtual event
Upcoming Webinars
October 18, 2022
10am (EDT) / 4pm (CEST)