DAQO New Energy has made a major inroad into the polysilicon market by inking a two-year supply contract with Jinko Solar. According to the contract, the former will supply the latter with 12,000-14,400 tons of polysilicon at the current monthly prices in 2020, and 15,600-21,600 tons in 2021.
The contract follows a similar one between the two parties signed on Feb. 21, which calls for DAQO to supply Jinko with 13,500 tons of polysilicon in 2019.
With the supply contract, Jinko Solar is expected to expand its annual capacities to 15 GW of polysilicon wafers, 10.5 GW of PV cells, and 16 GW of components by the end of 2019. This is up from the original figures of 10.5 GW, 7.4 GW, and 12.6 GW at the beginning of the year, according to the company’s midyear report. Of the projected capacities, mono-si capacity will hit 11.5 GW, while the capacities for PERC cells and N-type cells will stand at 11.5 GW and 800 MW, respectively.
Like Jinko Solar, the Chinese PV giant Longi was able to also sign an official contract with DAQO in August for the supply of 113,000 tons of highly pure mono-silicon for three years, which is worth 7.646 billion yuan in value (excluding tax).
Overall, DAQO has already managed to land a backlog of orders for polysilicon products, which is expected to top 140,400 tons in volume for 2020-2022. In the next three years, the supplier will continue to fulfill the orders of the aforementioned two customers, based on the recent quotes of 59-63 RMB/KG for polysilicon and 73-76 RMB/KG for mono-silicon, according to EnergyTrend. The orders are expected to be worth more than 10 billion yuan in total.
In the first half of 2019, DAQAO was able to raise its total capacity to 35,000 tons, with the output of polysilicon reaching 15,920 tons. Of its total sales, mono-si accounted for 80%, which will rise to 85% in Q3.