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Non-Chinese polysilicon manufacturers return to negative EBITDA
![Polysilicon EBITDA margins of OCI, REC Silicon and Wacker from Q3 2018 through Q3 2019](files/data/newsroom/polysilicon-news/2019/2019-10-30-polysilicon-EBITDA-margins-Q3%2718-Q3%2719.jpg)
Polysilicon makers OCI (South Korea, Malaysia), Wacker (Germany, USA) and REC Silicon (USA) all landed in red EBITDA territory in the third quarter. Leaving one-off effects aside, operating EBITDA margins ranged from -3.4% (OCI) to -9.3% (REC Silicon) to -13.3% (Wacker).
The negative figures were mainly due to the continuing price decline, but also to individual reasons:
- OCI conducted maintenance at its Korean plant; the lower utilization rate increased fixed costs.
- REC Silicon experienced a higher electricity rate, a production interruption caused by an equipment failure, and considerably declining polysilicon sales volumes for its electronic-grade plant in Butte. If one excludes severance payments of $2.2 million after the shutdown of the solar-grade plant in Moses Lake, REC Silicon’s EBITDA margin of -15.4% decreases to -9.3%.
- Wacker drew down inventory, which compressed the EBITDA margin of its polysilicon division.
Both OCI and Wacker reported a strong increase of polysilicon sales volumes by 18% and 22%, respectively, over the prior quarter. If growing supply from new production capacities in China overcompensates rising demand, however, a rebound of polysilicon prices remains out of sight.
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