OCI reports strong sales growth for polysilicon business

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South Korea's OCI has reported that polysilicon sales grew 90% year on year to KRW 888.7 billion ($750.2 million) in the third quarter of this year, despite rising raw materials prices, delayed shipments, maritime logistics and shipping issues. 

The quarterly net result was KRW 177.6 billion, up 2,830% year on year and 22% quarter on quarter. The operating result increased 977% from KRW 166.3 billion in the third quarter of 2020 to KRW 194.6 billion in the latest quarter.

OCI said polysilicon sales price rose by around 29% quarter on quarter, while sales dropped by 15% by volume.

The shortterm impact of the surge in metallurgical silicon prices would not be significant thanks to the diversified purchasers and existing raw material inventories,” the manufacturer said. The Basic Chemicals Division performance has improved with market price increases resulting from the lack of poly-si supply and stable production and continuous cost reduction of a Malaysian plant even in the limited operating environment under Covid-19.”

OCIM Sdn Bhd (OCIMSB), the company's Malaysian unit, began to ramp up the annual production capacity of its polysilicon factory in the Samalaju Industrial Park in Sarawak, Malaysia, by 5,000 metric tons in March.

OCI said tight supply and demand conditions for raw materials and polysilicon will likely continue until the first half of 2022.

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