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Stop production of new wave energy industry increased polysilicon

    China Nonferrous Metals Industry Association latest statistics branch of the silicon industry, the domestic polysilicon spot prices continued to fall to the bottom of the 20-23 yuan / ton, more than 40 domestic polysilicon business more than 80% has fallen into halted state, including Tianwei change (600 550),ratchet tie dowm Leshan Electric Power (600644), Sichuan investment energy (600 674) and other listed companies.

     Raw material prices fell below production costs leading to a large area of ??discontinued business - to early December, the domestic polysilicon price has dropped to 220 yuan / kg, more than the production cost in the bottom line. Short-term polysilicon producers can not cut costs by technological innovation,booster cables so have chosen to stop. Even if the state has access through the list of the 20 companies in the photovoltaic market this winter did not escape, now in addition to GCL and Luoyang Sino-silicon hydride technology has achieved cold business, and Ningxia Electric Power and other state-owned enterprises in some places not announced the shutdown, other companies polysilicon projects are at different levels of shutdown state. If the PV industry continues to remains in the doldrums, polysilicon project will stop the phenomenon is likely to continue.

     Government has been very clear intention of survival of the fittest - Development and Reform Commission announced "polysilicon access conditions", the "solar photovoltaic industry," second five "plan" in 2015, China also proposed to form about 10 tons of polysilicon companies, 12 gigawatt-level solar companies around. "Plan" significantly less than the number of firms existing in the number of enterprises (about 500). This also means that a considerable number of enterprises will be eliminated in the next 3-5 years. Only in technical innovation, the company will ultimately lower the cost of the PV industry through the winter.

     Although the majority of the new energy sector with the broader market trend, but the PV plate appears oversold bounce, the League of Nations PV index rose 0.6 percent, little more with the fundamentals, the proposed prudent investment.

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