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Analysis: China's polysilicon supply to go tight upon solar cell production
BEIJING, Oct. 21, 2010 (Xinhua News Agency) -- China's demand for polysilicon is estimated to reach 160,000 metric tons (tonnes) in 2011 when the country's crystalline silicon solar cell production capacity hits 23 GW and production goes around 16GW, reported China Securities Journal citing the latest data available.
Industry analysts predicted that China's polysilicon production will be around 60,000 tonnes at the maximum, leaving nearly 10,000 tonnes of demand to rely on import. However, the annual supply of polysilicon on the international market is only about 60,000-70,000 tonnes, which will worsen the supply shortage in the Chinese market
The PV industry is brewing a new round of leapfrogging development, but the lack of raw materials is likely to become a bottleneck to restrain the development of the the entire industry, said analysts, adding that the supply shortage will further push up the polysilicon price.
Now the bright prospect and handsome profit on the rising PV market have lured a great flood of capital.
The No. 48 Research Institute affiliated to the China Electronics Technology Group is the largest PV equipment producer and supplier in China. It racked up 1.767 billion yuan in sales revenue in the first half of this year, surging 134.46 percent year on year.
Shen Fuxin, secretary general of Zhejiang Province's Association of Solar Power Industry predicted that in east China's Zhejiang Province alone, the PV industry will generate an output value of 200 billion yuan by 2012. (By Zhang Aifang, zhangaf@xinhua.org)
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