Chinese polysilicon maker Daqo said in its Q2/2019 results that its ramp up of production capacity at its Xinjiang facility targeted at 70,000 MT under Phase 4A by Q1/2020 is on track. For full year 2019 it has guided for annual production volume of 37,000 MT to 40,000 MT. (Source: Daqo New Energy)
- Daqo New Energy’s annual revenues in Q2/2019 increased by $3 million to a total of $66 million even though it admitted net loss of $2.2 million
- Total polysilicon production was 7,151 MT and it sold 7,130 MT for an average selling price of $9.10 per kg, which changed from $9.55 in Q2/2018
- Out of all the polysilicon sold during the quarter, around 80% was sold to mono customers which it expects to increase to 85% in the coming quarter
- Company has guided for Q3/2019 polysilicon production between 9,200 MT to 9,500 MT with a total production cost of $7.5 per kg of which it hopes to sell around 9,000 MT to 9,300 MT externally
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Chinese polysilicon producer Daqo New Energy improved its revenues during Q2/2019 -from $63 million last year to $66 million, which means a drop from $81.2 million reported last quarter (see Daqo Net Income Drops 79% In Q1/2019). However, due to debottlenecking project and annual maintenance it was able to produce 7,151 metric tons (MT) of polysilicon at a total production cost of $8.12 per kg and cash cost of $6.65 per kg.The company’s total annual manufacturing capacity increased to 35,000 MT at the end of June 2019. 9
Management reported net loss attributable to its shareholders at $2.2 million in the quarter, vis-à-vis net income of $13.4 million a year back.
Daqo sold 7,130 MT of the volume produced for an average selling price (ASP) of $9.10 per kg, which was down from $9.55 per kg a year back.
Around 80% of its polysilicon was sold to mono customers and it expects the share to increase to 85% in the coming quarter. “In addition, we are now working closely with some leading mono wafer producers to test our ultra-high purity polysilicon for application in potential N-type mono wafer market,” it explained. Earlier this month, the company signed a 3-year polysilicon deal with LONGi Green Energy for 112,800 MT ultra-high-purity polysilicon (see Daqo Bags 3-Year Polysilicon Deal With LONGi).
Daqo’s capacity expansion plans at Xinjiang aiming for 70,000 MT is on track to be achieved by Q1/2020, which is when it expects 90% of total production volumes to be sold to mono consumers including 40% for the N-type mono wafer market.
“We believe polysilicon ASP will begin to improve in the third quarter of 2019 to a level that the majority of marginal high-cost players are able to break even on a cash-cost basis, which we estimate to be approximately $10.5 to $11 per kg,” said CEO Longgen Zhang.
For Q3/2019, management has guided to produce between 9,200 MT to 9,500 MT of polysilicon with a total production cost of $7.5 per kg. It expects to sell around 9,000 MT to 9,300 MT externally. For full year 2019, total production is guided to be in the range of 37,000 MT to 40,000 MT inclusive of the company’s annual facility maintenance.