U.S. Imposes $21 Per Kg Polysilicon Minimum Import Price
As the United States establishes a ‘price floor’ of $21 per kg for imported polysilicon in December, the competitive conditions for OCI Holdings in the U.S. market are expected to improve. This is because the price advantage of Chinese polysilicon, which is in the $5 range per kg, will significantly
In December, the United States will impose a minimum import price of $21 per kilogram for imported polysilicon, starting on December 4. This measure, known as a price floor, is designed to level the playing field for non-Chinese polysilicon producers by reducing the price advantage Chinese products currently hold in the market. According to the Trade Expansion Act, Section 232, the mechanism requires proving that the first normal price transaction in the United States meets or exceeds the minimum import price.
If it falls short, a specific duty corresponding to the difference is imposed. The current average price of Chinese N-type high-purity polysilicon is $5.4 per kg, while non-Chinese polysilicon is approximately $18.5 per kg. Once the minimum import price is implemented, the price gap between Chinese and non-Chinese products is expected to narrow to around $13 per kg, giving OCI Holdings an improved competitive advantage.
OCI Holdings, a major polysilicon company outside of China, produces 35,000 tons of polysilicon annually, primarily for the solar power industry. The company plans to double its production capacity to 70,000 tons by 2029, in response to increasing demand for solar power, driven by the expansion of artificial intelligence (AI) infrastructure in the United States.
OCI Holdings currently secures sales channels for its existing production volume and has signed long-term supply contracts, including one with Hanwha Solutions for $1.2 billion over 10 years starting in 2024. The implementation of the minimum import price could impact future contracts and expansion volumes for OCI Holdings, as well as other non-Chinese polysilicon producers.
However, existing long-term supply contracts with fixed price conditions may limit the immediate impact on profitability. OCI Holdings is actively discussing potential new contracts with customers, while awaiting clearer implementation standards for the minimum import price.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
