China to Restrict Polysilicon Production

China will issue detailed entry standards for domestic polysilicon companies, a measure designed to prevent a production boom/bust cycle.

In 2009, China’s estimated polysilicon production output skyrocketedby 300% against 2008, to reach 18,000 tons, good enough for half of domestic demand, Li Baoshan, secretary general at Beijing-based ChineseRenewable Energy Society, said on Mar 16 during Shanghai’s 6th China SoG Silicon and PV Conference (CSPV). 

Thanks to a flood of newentrants in 2008, Chinese polysilicon production output broke into thefive-digit numbers for the first time. However, that surge has alsobrought worries about oversupply, as capacity for the country’scompleted projects, under-construction projects and planned projectsrespectively reached about 44,000 tons, 68,000 tons and 126,700 tons asof September 2009, says Wang Bohua, deputy counselor of China’s Industry and Information Technology Ministry.

Meanwhile, Mr. Wangbriefed that the upcoming entry standards will follow the governmentplan issued last September, restricting new poly-silicon projects withless than 3,000 tons of annual capacity and high power consumption.However, Mr. Wang declined to disclose the issue date and other details.

Another measure to guide China’s polysilicon production is thatthe central government will set up silicon products standards based onthe market demand as well as producers’ technical level, he added.

Statistics from China’s Industry and Information Technology Ministryshow that mainland China produced over 4,000 megawatts of PV cells in 2009, which used about32,000 tons of polysilicon.



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