A series of explosions at a northwest China chemical plant is expected to reduce the worldwide production of polysilicon by nearly 10%, a U.S. investment banking firm reports.
According to Roth Capital Partners, four explosions Sunday and a fifth on Monday at the GCL-Poly Energy plant in Xinjiang means the company’s production capacity has been reduced by an estimated 50,000 metric tons for the next three to six months.
The blasts were blamed on an overpressure in the plant rectification and boron removal filter, the Taiyang News reports.
A chief competitor, Daqo New Energy, also suffered a fire-related disruption earlier this month, although relatively minor compared to the GCL-Poly Energy explosions, Roth Capital reports.
Taken together, the production problems in the polysilicon industry are expected to cause an increase in prices.