Longji shares to buy silicon abroad, the domestic silicon market before the festival is still in short supply.On the evening of Feb. 8, Longji Group sold two large orders, one of which involved a 6.36 billion yuan purchase of polysilicon materials from a subsidiary of OCI, one of the overseas polysilicon giants. In fact, since last August, wafer companies have been frequently buying long orders to lock in a long-term supply of silicon.On the same day, one of the giants of domestic silicon new special energy also throws out 8 billion yuan polycrystalline silicon material expansion plan, silicon material expansion tide also intensified. Photovoltaic silicon wafer giant Longi Co., Ltd. announced two major purchases of photovoltaic glass and polysilicon on Tuesday night.Longji's 13 subsidiaries plan to purchase PV glass from Flett and its 4 wholly-owned subsidiaries. It is agreed that from 2022 to 2023, the former will purchase PV glass from the latter according to the amount of 46GW modules. According to the calculation of the average price of 3.2mm photovoltaic glass 42 yuan/square meter (including tax) and the average price of 2.0mm photovoltaic glass 34 yuan/square meter (including tax) published by Zhuochuang Weekly Review
on February 4, 2021, the total amount of this contract is estimated to be about 10.4 billion yuan.
In the other contract with an estimated value of RMB 6.36 billion, Longji and its nine subsidiaries signed a three-year polysilicon material purchase contract with OCIM Sdn.Bhd.(hereinafter referred to as the "Seller"). According to the agreement, the buyer will purchase approximately 77,700 tons of polysilicon material from the seller between March 2021 and February 2024.According to the China Nonferrous Metals Industry Association Silicon Branch on February 3 announced the average price of single crystal compact material transaction is 92,500 yuan/ton.
Longi's announcement is of more significance to the industry, which means that the upstream raw materials of domestic photovoltaic giants are purchased from China to foreign countries, again reflecting the scarcity of domestic silicon production capacity.
And at the end of January, polysilicon material prices again.Re-feeding, single crystal dense material, single crystal cauliflower material transaction price increase are about 2%. The silicon branch of China Non-ferrous Metals Industry Association said most silicon materials companies had signed orders until the end of February so far, and some would even execute orders until mid-March, and wafer companies did not have
any overstock.It can be seen that the main stimulus factor of this round of demand surge and price rise is not the pre-holiday stock demand, but the actual demand increment of polysilicon material stimulated by the actual release of silicon wafer capacity expansion supported by the downstream demand. At present, the periodic supply of polysilicon is short of demand, and the silicon material and silicon wafer are in the state of zero or even negative inventory, so support the steady rise in the price of polysilicon.
Association expects that in February, demand and supply are basically flat or slightly synchronous increase in the case of stage supply conditions continue, the price of polysilicon will be high and stable.
The silicon giant has unveiled a $8 billion expansion plan.
In fact, the National Business Daily has already launched a series of reports in September 2020, pointing out the phenomenon of long order locking silicon material in the industry. Under the background of the growing demand for downstream PV installations, midstream enterprises with expanding production capacity are spending tens of billions of yuan to lock in silicon supply in the next five years.
As early as last August, Longji Group signed a large purchase order with Asian silicon industry estimated at 9.498 billion yuan for polycrystalline silicon materials, agreeing to purchase 124,800 tons of polycrystalline silicon materials on September
1, 2020 BBB 0 on August 31, 2025. In September last year, Shanghai CNC announced that the company plans to purchase 16,700 tons of raw material polysilicon from GCL-Poly in 2020~2021, with an estimated purchase amount of about 1.57 billion yuan.
Now four months past, silicon wafer enterprises long single lock silicon material phenomenon is becoming more and more intense.In February this year, Longji shares and Jiangsu Zhongneng Silicon Industry Science and Technology Development Co., Ltd. signed a polysilicon material procurement agreement. According to the agreement, the amount of polysilicon material cooperation between the two parties from March 2021 to December 2023 is no less than 91,400 tons, with an estimated contract value of 7.328 billion yuan.
Another photovoltaic giant, CMC Magnetics, and GCL-Poly signed the Framework Agreement for Polycrystalline Silicon Purchase and Sales Cooperation, which will purchase 350,000 tons of polycrystalline silicon materials, including granular silicon,
from GCL-Poly from January 2022 to December 2026. Worth taking seriously a bit, the silicon material of the above - mentioned lock sheet did not lock the price, but go with the market.
By the end of 2020, more than half of the market's capacity has been locked up, according to SolarZoom, a new energy think tank. "Daily Economic News" reporter noted, along with the shortage of the upstream market, silicon material enterprises have also started the expansion plan.
On February 8, TBEA announced that its subsidiary Xinte Energy plans to invest 8 billion yuan in a high-purity polysilicon project with an annual output of 100,000 tons. TBEA expects to officially start construction within one month after the conditions are met, and it is expected to be completed and put into production within 18~24 months after the construction starts.
This means that, if all goes well, TBEA's new capacity will reach production in at least a year.In fact, the photovoltaic industry expansion tide in line with the industry's expected judgment. Last week, Wang Bohua, vice chairman and secretary general of the China Photovoltaic Industry Association, said that China's new photovoltaic installed capacity will grow by 60% year on year in 2020. The global photovoltaic
market is expected to accelerate this year, with a total of 150-170 GW of new installed capacity, and the overseas scale will reach a new high.He expects China to add 55 to 65 gigawatts of new installed power this year and 70 to 90 gigawatts annually during the 14th Five-Year Plan period.