The price of the polycrystalline material increased by 20% this Wednesday (22) compared to the previous week in China, according to PVinsights, an international solar energy research company.
The increase is due to possible explosions that took place at the GCL-Poly factory, in Xinjiang, China, which is one of the world's main producers of polycrystalline silicon.
According to California investment bank Roth Capital Partners, which issued a note on the case, there were four explosions at GCL facilities last Sunday (19), followed by a fifth this Monday (20).
According to the company, overpressure in the rectification and boron removal filter during equipment maintenance may have caused the leak of trichlorosilane gas, which, in turn, reacted explosively with moisture in the air.
Roht also reports that, after the incident, 50 MT (metric tons) of polycrystalline cell production capacity were removed, potentially resulting in a 10% reduction in the global supply of solar energy raw materials.
The investment bank estimates that GCL's factory in Xinjiang, which produces 48 tons per year, could be closed within three to six months. There are no details of any casualties as a result of the explosions.
O Canal Solar contacted GCL-Poly for more information, however, the company, at the time of publication of this report, had not released any official statement.
We also contacted GCL Brasil, however, the manufacturer reported that it has not yet received any internal communication about what happened.
About GCL-Poly
GCL-Poly was founded in 2006 and is headquartered in Hong Kong. The company was the top producer of polycrystalline silicon in 2018 before falling to fourth place last year, according to BloombergNEF. Total global production of the material was around 518 thousand tons in 2019.
About PVinsights
PVinsights helps leading PV companies and financial professionals make real-time decisions about business strategy, component purchases and investments through reports, advisory service and efficient pricing reports.
