- EN
- Newsroom
- Polysilicon News
- Article
Polysilicon producer Daqo breaks the cash cost barrier of $6/kg

After weaker results in the second quarter (Q2) due to debottlenecking and maintenance, Daqo New Energy has returned to record figures. The China-based polysilicon manufacturer achieved so far unthinkable cash production costs of US$5.85/kg in the third quarter.
Production output increased from 7,151 metric tons (MT) in Q2 to 9,437 MT and the sales volume from 7,130 MT to 9,238 MT. As Daqo’s average selling price declined only slightly by 1.2% from $9.10/kg in Q2 to $8.99/kg, the company’s EBITDA margin recovered from 15.5% in Q2 to 23.5% – only little below the value of 24.6% it reached in Q1 (see chart).
Once Daqo’s capacity expansion from 40,000 MT to around 80,000 MT is fully running by the end of the year, the company expects production costs of $6.50/kg, including higher depreciation for the new facilities, compared to $6.97/kg in Q3. Consequently, cash costs will approach $5/kg.
Daqo predicts that most of the 22.8 GW of subsidized PV projects in China originally planned to be installed in the fourth quarter of 2019 will be delayed to the first half of next year. The company believes that global PV demand in 2020 could exceed 140 GW.
- 2019
- China
- costs
- Daqo
- demand
- EBITDA
- electricity rate
- expansion
- forecast
- manufacturer
- plant
- PV installations
- spot price
Get more information ...
- on the background and ranking of the world’s top ten producers: polysilicon manufacturers
- on the Siemens process, FBR technology and UMG silicon: polysilicon production processes
- on the application of polysilicon in semiconductors and solar cells: polysilicon uses
- on the size, shares and trends of the market and China’s role: polysilicon market analysis
- on the current polysilicon spot price, charts, price forecast and history: polysilicon price trend
Gain in-depth insight – with the Polysilicon Market Outlook 2024
- Benefit from 76 pages full of rich data, in-depth analyses and detailed forecasts on the polysilicon, solar and semiconductor industries
- Learn all about the latest developments of polysilicon manufacturing technologies (Siemens process, fluidized bed reactor, upgraded metallurgical-grade silicon)
- Obtain comprehensive data on production volumes and capacities of 42 solar-grade and electronic-grade polysilicon plants from 2016 through 2024
- Gain insight into decisive market trends, based on four sophisticated scenarios of supply and demand through 2024
- Get valuable guidance with cash cost data on 25 solar-grade polysilicon plants and spot price forecasts through 2024
Learn all about the polysilicon market
Comments
Add a comment