With the global economy bracing for a slow down as nations face the coronavirus, there are fears over the impact on trade and the effect on the average citizen. Many feared that the outbreak in China and the massive shutdown the country experienced would interrupt the production and dissemination of smartphones and other digital technology.
When looking at the world’s leading silicon wafer suppliers, China and the United States play significant roles in the production of the tiny components within cell phones. As the coronavirus began to spread through China, most of the regions where polysilicon was produced were away from the reach of the virus. However, it was estimated that 27% of the nation’s whole production would ultimately be affected by the pandemic. However, the experts felt that the wafer and solar glass production levels would suffer more.
The Need for Polysilicon
Around the world, the polysilicon industry is booming. Tax exemptions by state and local government agencies for companies working in the solar PV industry are just one reason, while the fall of prices in raw materials, new tech advancements, increased production, and consumer electronics demand are others. In spite of these compelling reasons to see more polysilicon production plants opened around the world, the lack of anti-dumping policies and capital investments may keep supply from meeting the demand. Countries around the world are looking for clean energy options and increased power needs, so there is plenty of ROI waiting for those that take the risk with polysilicon production.
The Pricing of Polysilicon
As the coronavirus remains unchecked, a logical inference from the production regions affected by the pandemic is an increase in cost for materials. The market might take a hit until global health is restored, but there will still be a long-term demand for polysilicon. The pricing may fluctuate for the time being, but it won’t diminish how worthwhile the investments will be.