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The largest domestic silicone factory burst into flames! The raw materials are going to rise again!

Echemi 2021-06-09

Yesterday (8th) at 11:54, a fire broke out in the 997 siloxane product packaging workshop of the 200,000 tons/year sealant project of Hesheng Silicon Industry in western Xinjiang. At present, the fire has been fully controlled, there were no casualties, and the specific cause of the accident is under investigation.

Shihezi Hesheng Silicon Industry’s 200,000-ton Silicone Plant’s silica reactor exploded (on-site personnel reported hearing the sound of two explosions). At 12:25, the offices of Hesheng’s surrounding companies Tianlu, Tianfu Nortel and Daquan Silicon Plant began to evacuate Part of the production staff stayed behind, and the Shihezi North 15th Road was closed for traffic control. The Shihezi No. 11 Road and No. 12 Daochang Stations to Tianlu, and Tianfu container reversing vehicles all stopped operations.

At the end of January 2021, the 200,000-ton sealant project rectification device has been successfully commissioned, and organosilicon intermediates were produced on February 10. The 200,000 tons sealant project covers an area of 935 acres and has a total investment of 4.27 billion yuan. It is the downstream extension product of Xinjiang Western Hesheng Silicon Industry Co., Ltd. with an annual output of 300,000 tons of industrial silicon. It is the largest investment promotion project under construction by the Corps in 2020. It is also the largest monomer sealant project in China.

Hesheng Silicon Industry’s 400,000-ton organic silicon monomer plant in Shihezi began production in February this year. It is reported that only one set of 200,000-ton capacity plant is currently operating, and the subsequent release of production capacity will continue.

On the day of the incident, Hesheng Silicon Industry issued an announcement that at 11:54 on June 8, 2021, Xinjiang West Hesheng Silicon Industry Co., Ltd. ("Western Hesheng"), a subsidiary of the company, will produce 200,000 tons of sealant per year. The second phase of the finished product packaging workshop A fire accident occurred in the trial production line; the production line is a production device of the West Hesheng Organic Silicon Project, which is still in the trial production stage and does not involve the production of West Hesheng industrial silicon products.

According to the data, Hesheng Silicon Industry is a provincial-level key high-tech enterprise in Zhejiang Province that integrates R&D, production and sales focusing on new silicon-based materials. The company’s manufacturing bases are mainly located in Shihezi City, Xinjiang, Heihe City, Heilongjiang, and Luzhou City, Sichuan. One of the companies with the most complete business chain and the largest production scale in my country's silicon-based new materials industry was listed on the Shanghai Stock Exchange on October 30, 2017. Hesheng Silicon is a double-leading enterprise in the industrial silicon and organic silicon industries. It has industrial silicon and organic silicon production capacity of 730,000 tons/year and 530,000 tons/year respectively, ranking first in the world. After the new production capacity is put into operation in 2021, it is expected that the production capacity of organic silicon will increase. Reach 930,000 tons/year.

Recently, the price of polysilicon is still on the rise. According to the price monitoring of the Silicon Industry Branch, the domestic single crystal compound feed price reached the range of 206-221 yuan/kg last week, and the average transaction price was 211.9 yuan/kg; the single crystal dense material price range At 204-219 yuan/kg, the average transaction price is 208.9 yuan/kg; the price range of single crystal cauliflower material is 201-217 yuan/kg, and the average transaction price is 205.2 yuan/kg.

Due to upstream price pressure, component prices have also reached historical highs in the past two years. On June 7th, Canadian Solar’s tax-included ex-factory price of photovoltaic modules showed that the ex-factory price of polycrystalline modules was 1.81-1.88 yuan/W including tax, and the ex-factory prices of single-sided monocrystalline 360-665W were 1.81-1.94 yuan/W including tax. The ex-factory price of double glass 520-655W including tax is 1.91-2.03 yuan/W.

It is reported that the domestic silicon material quotation has reached 260 yuan. In this way, it is estimated that the price of silicon material reaches 260 yuan and the transaction price is not far away. In fact, in the last week of May, the actual transaction price of silicon materials was only 202 yuan/kg.

It is worth noting that the explosion is adjacent to Xinjiang Daquan Silicon Material Factory, a major polysilicon material manufacturer. In accordance with the past handling methods of similar safety incidents by the regulatory authorities, local chemical plants may usher in a new round of safety inspections. This is bad news for my country's photovoltaic industry. In the past week, the long-term price of domestic single crystal double-feed materials has risen to 210-220 yuan/kg, and the quotations of overseas manufacturers continue to rise. Coupled with the month-on-month decline in silicon material output in June and the increase in upstream silicon material plant maintenance companies, the explosion may further push the price of silicon material to continue to rise, pushing its price to a new high.

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