China's PV industry enters a shuffle

Accompanied by the EU's compulsory registration of PV products in China, the double-sticks that have been pressed against the domestic PV industry have entered a countdown. Just yesterday, several photovoltaic giants in China spontaneously had a “big move”. The two industry giants Yingli Green Energy and GCL-Poly at both ends of the sub-industry chain have started cooperation in the supply chain. Suntech Power was yesterday ruled by Wuxi City Intermediate People's Court into bankruptcy and restructuring. Industry experts said that the photovoltaic industry has entered the shuffle cycle.

Yesterday, Yingli and GCL began to hold a group. The increase in the price of raw material polysilicon upstream of PV is undoubtedly a direct stimulus to the cooperation between the two. The world's polysilicon market has long been monopolized by several international polysilicon oligopolies such as Hemlock of the United States and WACKER of Germany. The prices of product supply are also determined by these companies. Due to the imminent Chinese anti-dumping anti-dumping investigation on the European Union's polysilicon, data from photovoltaic research institutions shows that the price increase of solar grade polysilicon has reached 15% this year. Taking GCL-Poly as an example, the price of polysilicon after the Spring Festival has been raised from the initial RMB 110 to RMB 150-180 per kilogram. "Some foreign polysilicon companies at the time of the initial cut out, took the opportunity to dump at a low price, which naturally triggered the domestic industry vigilance." Guoxin Securities Zhang Xin, the new energy industry analyst of electrical equipment said.

Suntech Power, another big PV giant in China, has not had a good day. Yesterday, the Wuxi Intermediate People's Court ruled on the bankruptcy law to implement the bankruptcy and reorganization of Wuxi Suntech Solar Power Co., Ltd. As of the end of February, nine creditor banks, including ICBC, Agricultural Bank of China and Bank of China, have exchanged RMB 7.1 billion in local and foreign currency credit balances with Suntech. Suntech finally declared bankruptcy in the event of a debt default, and changed its coach yesterday, announcing Zhou Weiping as Suntech's new executive director and president. Suntech's share price also fell from the high of 85 dollars in 2007 to less than 0.6 dollars when it was opened yesterday.

“The domestic photovoltaic industry has entered the reshuffle cycle.” Bai Ming, deputy director of the International Market Research Department of the Institute of International Trade and Economic Cooperation of the Ministry of Commerce, stated that due to the dual counter investigations in Europe and the United States, China’s dual polysilicon survey against Europe, and domestic photovoltaic industry series Encourage the introduction of policies, the current photovoltaic industry's living environment has changed, "directly from the industry, set up factories in foreign countries, industry chain integration, domestic photovoltaic companies will face these three options."