Decrypt this round of solar silicon material----Price increases is similar to a bank run (1/2)

Decrypt this round of solar silicon material----Price increases is similar to a bank run

Silicon is one of the key material for solar led lights, like solar flood lights,solar led street lamp,led solar sensor wall light and etc. The current wave of price increases in the photovoltaic industry, especially silicon materials, is unprecedented. Mainly due to the insufficient supply of front-end raw materials caused by the global epidemic and the delay in the supply cycle of silicon materials than the downstream demand cycle.
 
According to public data from the industry association, the monocrystalline silicon wafer expansion capacity of the entire silicon wafer industry in 2020 will be in the early 200GW. In the first half of 2021 alone, the expansion of monocrystalline silicon wafer production capacity reached 260GW. In fact, the forecasted production capacity of monocrystalline silicon wafers in 2021 will reach 380GW. In 2022, the predicted production capacity of monocrystalline silicon wafers will reach 550GW.
 
According to statistics from the Silicon Industry Branch of the Nonferrous Metals Industry Association, in 2020, the domestic production capacity of polysilicon will be 420,000 tons, and in 2021 it will be 483,000 tons; the foreign production capacity will be 99,000 tons and 87,000 tons respectively. Therefore, the total global polysilicon production capacity in 2021 will be less than 600,000 tons.
 
"According to the information collected by industry analysis agencies, according to the current industry expansion plan and construction pace, by the end of 2021, the production capacity of silicon wafers will exceed 360GW, and the production capacity of solar cells will exceed 450GW." said Yan Hu, vice chairman of Tongwei, said Global Silicon The demand for installed capacity of the corresponding terminal in the material market is only 170GW to 180GW of production capacity.
 
In contrast, it is not difficult to find that the production capacity of silicon wafers is twice that of silicon materials. Some people who have invested in photovoltaics for a long time used a vivid analo gy. The demand for silicon materials caused by the large expansion of silicon wafer production capacity is like a bank run. "The bank only has so much money, but a large number of depositors are swarming with cash, not to mention just a small bank. Even a big bank can't bear it."