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In 2013, China's polysilicon industry helped the photovoltaic industry
The Ministry of Commerce announced on the 18th that it would implement temporary anti-dumping measures against solar-grade polysilicon from the United States and South Korea starting on the 24th. Industry experts believe that although the preliminary ruling does not yet include EU products, it is a timely move that will help ease the current challenges facing the entire sector. This decision reflects China’s commitment to maintaining a fair trade environment and protecting its domestic industries.
Maintaining a fair trade environment has become a priority for China’s photovoltaic (PV) industry, which relies heavily on polycrystalline silicon as a key raw material. Over 80% of PV cells are based on crystalline silicon, making polysilicon a crucial component in the supply chain. In July 2012, China initiated a "double anti" investigation against U.S. and South Korean polysilicon, followed by a similar case against the EU in November of the same year. These actions were eventually merged into a comprehensive "polysilicon double anti" case involving the U.S., South Korea, and the EU.
Shu Hua, chairman of Jiangsu Zhongneng, stated that this preliminary ruling demonstrates China’s firm resolve to safeguard the long-term development of its PV industry. Wang Bohua, secretary-general of the China Photovoltaic Industry Alliance, noted that while China and the EU have been negotiating price agreements since the EU’s anti-dumping measures against Chinese PV products, this move shows a more strategic approach toward the EU.
Lu Wei, secretary-general of the Polysilicon Industry Technology Innovation Strategy Alliance, emphasized that the Ministry of Commerce's proactive stance at a critical time highlights its responsibility to maintain a fair trade environment and support the polysilicon industry.
In the second half of 2012, the spot prices of polysilicon imported from the U.S. and South Korea fell significantly, reaching $16–$18 per kg, below the global average cost of $20 per kg. This led to unfair competition, putting Chinese polysilicon producers in a difficult position.
Wang Bohua explained that the "polysilicon double anti" case has created complex relationships between the upstream and downstream sectors of China’s PV industry. Initially, there was strong support for developing the domestic polysilicon industry, but as the U.S. and EU markets shrank due to anti-dumping measures, the downstream sector entered an era of low profitability and became highly sensitive to price fluctuations.
Lu Wei added that both the polysilicon and PV industries are now closely linked, with the need for balance between their respective interests. Liu Mingli, an associate researcher at the China Institute of Contemporary International Relations, pointed out that despite being the world’s largest PV producer, China remains vulnerable due to its reliance on foreign markets and raw materials.
He said that once China is positioned at the lower end of the global industrial chain, it becomes extremely difficult to move upward. The preliminary ruling on the "polysilicon double anti" case represents a tough choice between short-term local interests and long-term national goals.
Regarding price trends, the preliminary ruling is expected to lead to higher prices for imported polysilicon, which accounts for over 60% of China’s market share. However, industry sources suggest that the increase will only bring prices back to normal levels, without significant profit margins. The cost structure among Chinese polysilicon companies varies, with top-tier producers like GCL-Poly operating at around $20 per kg, while others face higher costs.
GCL-Poly, the world’s largest polysilicon producer with a capacity of about 65,000 tons, can meet approximately 50% of domestic demand. Zhu Rongshan, chairman of GCL-Poly, mentioned that the company has been operating at full capacity and is committed to supporting the downstream PV industry.
Zhao Jiasheng, vice president of the China Nonferrous Metals Association, warned that some overseas polysilicon may be rerouted through Taiwan or South Korea before being re-exported to China, potentially undermining the effectiveness of the anti-dumping measures.
Dr. Wang Shijiang from the China PV Industry Alliance Secretariat noted that the polysilicon market is currently oversupplied, and only the top five global suppliers can meet the full 2013 demand. He concluded that while the preliminary ruling offers a temporary reprieve, it is not a permanent solution. Long-term competitiveness will depend on building sustainable capabilities within the industry.