China’s to blame for the plummeting prices for Polycrystal products

26 april 2016 | Kommersant FM

In the past seven years, prices for Polycrystal products has fallen several times. In 2008 the prices were USD 300-400 a kilo and by 2015 they collapsed to USD 20 per kilo. In an interview for Kommersant FM, adviser to the Head of the Analytical Center Yuri Ammosov laid the blame for the collapse in prices squarely on China.

Yuri Ammosov
Yuri Ammosov
Adviser to Director General of the Analytical Center

“Everyone was convinced that business-wise everything was perfectly justified. But the same reasoning was followed in China when they invested about USD 1 billion in a similar polycrystal project. However, over there the Political Bureau and the Central Committee of the Communist Party directly instructed the owners to dump the prices at any cost, promising that if they need a billion dollars they would get it and if they needed 10 billion they would get that too as long as they kept at it until the entire market was theirs. And while our project was being launched based on the conditions that existed before that, the Chinese set up production at extremely low prices,” Mr. Ammosov explained.

Rosnano incurred RUB 13 billion in losses from projects that failed to generate any profit, the Kommersant writes citing data of the Accounts Chamber that found that half of all the projects curated by the state corporation had been epic fails. Rosnano representatives say the losses resulted from market factors, saying that currently Rosnano is running 106 projects.  The company recently pulled out of 16 projects and only 6 of those were losing money with the polycrystalline silicon project losing the largest amount.

 

Source:Kommersant FM