Polysilicon Market
Korean polysilicon manufacturers are enjoying an opportunity to increase their share in the Chinese market amid the trade dispute between the United States and China.
According to industry sources, the Ministry of Commerce of the People’s Republic of China announced its anti-dumping tariffs on January 20 on polysilicon products imported from Korea and the US. The tariff rate is 2.4% and 2.8% each for OCI and Hankook Silicon, 12.3% for Woongjin Polysilicon, and 48.7% for KCC, KAM, and Innovation Silicon. Also, 12.3% is applied to Hanwha Chemical and Samsung Fine Chemicals, which are planning to start the commercial production of polysilicon before the end of this year. The five major US companies, including REC Solar and Hemlock, are subject to a rate of 53.3% to 57%.
The difference in figures is expected to be a boon to Korean polysilicon manufacturers down the road. In particular, OCI is considered to be highly viable in the competition against Chinese companies. At present, local producers account for 32.9% of the Chinese polysilicon market, followed by their US counterparts (26.5%), European (23.3%), and Korean companies (17.3%).
Still, the 12.3% tariff rate on Samsung Fine Chemicals and Hanwha Chemical could pose a problem with time in that both have just entered the industry. They can apply for an adjustment of the tariff rate from six months after the start of the commercial production. Hanwha and Samsung are planning to kick off their production activities in March and H2 of this year, respectively.