Sichuan Yongxiang to begin trial run of 800-ton polysilicon line

<p> Sichuan Yongxiang Polysilicon Corp. will put a line that can produce 800 tons of polysilicon each year into trial production this week, which is part of the first phase of the company's polysilicon project, an official with the company told <emph typestyle="it">Interfax</emph> on Aug. 5. </p> <p>Sichuan Yongxiang's 200-ton production line, which started trial operation in early July, will officially be brought online this week and the 800-ton line will complete the first phase of the project, bringing total production capacity to 1000 tons, Tian said. </p>

<p>The 200-ton production line attained quality certification on Aug. 4 from U.S.-based Evans Analytical Group, the world's leading independent testing service for polysilicon. </p> <p>The company has set an output target of between 200 tons and 300 tons of polysilicon, the raw material used in solar cell production, for this year, Tian said. </p> <p>The progress Sichuan Yongxiang has made on this project has attracted industry attention due to the company's more ambitious second phase, which aims to bring three 3,000-ton production lines on-stream by 2010. </p> <p>China is expected to produce about 4,000 tons of polysilicon by the end of this year, according to analyst Zhou Tao with Great Wall Securities. </p> <p>Sinolink Securities previously forecast that Sichuan Yongxiang's polysilicon output will reach 155 tons, 800 tons, 2,200 tons and 4,000 tons in 2008, 2009, 2010 and 2011 respectively. </p> <p>However, there is general consensus within the industry that polysilicon prices will start to fall in 2009 or 2010 due to the rapid expansion in production capacity worldwide. Prices have seen a bullish rally since 2003, soaring from $25 per kilogram to the current spot price of about $430 per kg. </p> <p>Polysilicon prices will average at about RMB 2,400 ($350.36) per kg this year, and will go down to RMB 2,000 ($291.97) per kg next year and then to RMB 1,600 ($233.58) per kg in 2010, Sinolink Securities predicted. </p> <p>If this forecast is accurate, Sichuan Yongxiang's polysilicon project is at a comparatively advantageous position, as it entered production before a large reversal in the price trend materialized, said Zhou from Great Wall Securities. </p> <p>Two 1,500-ton projects developed by CSG Holdings and Jiangsu Sunshine Corp. are also expected to enter production in the latter half of this year. </p> <p>-JY </p>