1. In the past few years, the demand for silicon materials in the photovoltaic industry has greatly increased, leading to the soaring price of silicon materials.
The demand for silicon materials has increased significantly, which has led to the continuous expansion of the upstream and downstream of the industrial chain. Silicon wafers, batteries and components all need a lot of silicon materials. In this case, the cost of expanding the production of silicon materials is relatively high, there are many local policy factors, and the approval of silicon materials is also very strict, resulting in a relatively high entry threshold. In the past few years, the supply has been exceeding the demand, and the manufacturers have not enough power to produce, and the price of silicon materials has soared, but the output is not enough at one time.
2. It is also due to the long expansion cycle of silicon materials and the slow growth of production capacity, which also leads to the soaring price of silicon materials.
It takes a long time from construction to investment, and it cannot be produced immediately after it is put into production. It needs a quality inspection process, so it takes a long time for an enterprise to produce normally, and the investment during this period is very huge. It also makes many silicon manufacturers face great risks. Moreover, many silicon manufacturers are not particularly willing to expand production, so silicon materials are in short supply for a certain period of time, resulting in high prices.
In short, there are still many problems in the soaring price of silicon materials, such as many silicon wafer manufacturers reselling silicon materials, undermining market fairness. The high price of silicon materials may last for some time. With the soaring price, the production capacity will gradually increase, and the extra income will attract new manufacturers.