Jun 20, 2022

(Yicai Global) June 20 -- China’s Tongwei has received a CNY50.9 billion (USD7.6 billion) order of solar polysilicon products, the second large order in three months. The Chinese solar polysilicon giant inked a purchasing agreement with IDG Capital-backed Gokin Solar, the Sichuan-based company announced on June 17. The deal will be effective from this year to 2026. Gokin will buy no less than 216,100 tons of polysilicon products at a price that will be determined by the parties on a monthly bargaining base, Tongwei added. According to the recent trading prices released by the Silicon Industry of the China Nonferrous Metals Industry Association, the contract is worth CNY50.9 billion, taxes excluded. This is the second large order that Tongwei has won in the past three months. On March 21, the company announced it had signed a two-year agreement worth CNY44.2 billion with Chinese silicon giant Longi. The purchase volume of that deal was 203,600 tons. The news failed to boost Tongwei’s share price. The stock [SHA: 600438] was trading down 0.6 percent at CNY54.15 (USD8.11) as of today’s lunch break. To meet the rapidly growing downstream demand, Tongwei said in July last year to invest CNY14 billion to build a high-purity crystalline silicon plant with an annual capacity of 200,000 tons. Once the project is completed, the company’s total annual output of high-purity crystalline silicon will almost double to 430,000 tons. As of the end of 2021, Tongwei’s annual production of silicon materials was 180,000 tons. Silicon prices have been increasing in the first half of the year due to soaring global energy prices, despite several capacity expansion projects have been put into operation this year. The transaction price of silicon materials stretch from CNY263,000 to 270,000 (USD39,160 to USD40,200) per ton the past week, compared with CNY134,000 per ton in June last year and nearly CNY70,000 yuan (USD10,420) per ton at the beginning of 2021, according to the data from the Silicon Industry of the CNIA on June 15. Editors: Tang Shihua, Futura Costaglione Follow Yicai Global on RELATED