OCI Holdings is anticipated to enjoy long-term benefits resulting from the United States’ intensified sanctions on China’s polysilicon. There are only three non-Chinese polysilicon manufacturers globally, and OCI Holdings is one of them in Korea.
According to sources in the solar energy industry on Sept. 7, the U.S. Department of Commerce concluded that some Chinese companies have been indirectly exporting solar modules via Southeast Asia. Consequently, from June next year, the U.S. has decided to impose a minimum 30% anti-dumping and countervailing duty on solar module exports from Chinese companies.
This is an additional measure following the U.S.’ restriction on importing polysilicon produced in the Xinjiang region, citing human rights abuses against the Uighur minority. Now, polysilicon from areas outside Xinjiang in China will also be sanctioned.
Currently, there are only three non-Chinese polysilicon producers globally: U.S.-based Hemlock, Germany-based Wacker, and Korea-baed OCI Holdings. Their combined production capacity cannot meet U.S. demand. This is evident from an analysis by the Chinese polysilicon manufacturer DAQO, which stated that non-Chinese polysilicon supply only meets two-thirds of U.S. demand.
The industry believes that establishing factories in the U.S. would cost more than ten times the current expenditure. The European Union is also set to implement a forced labor prohibition law in two years, which may further diminish the position of Chinese firms in the global polysilicon market. This potentially means non-Chinese manufacturers might supply polysilicon at relatively higher prices in the long run.