REC Silicon’s Q3 Revenue Falls 5% YoY as Polysilicon Prices Drop

Average polysilicon prices witnessed a 3.6% decrease quarter over quarter

November 16, 2023


Norway-based polysilicon manufacturer REC Silicon reported a revenue of $34.8 million in the third quarter (Q3) of 2023, a 5% year-over-year (YoY) decrease from $36.7 million, as polysilicon prices continued to decline during the period.

The average polysilicon prices for witnessed a 3.6% decrease in Q3 from the previous quarter.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at a loss of $17.8 million, an increase from a loss of $13.8 million in the previous quarter.

Total polysilicon sales volume, including by-products, was 199 MT during the quarter, dropping from 426 MT in Q3 2022. Semiconductor-grade polysilicon sales volume was 140 MT, while other-grade polysilicon sales volume was 59 MT.

The overall polysilicon production volume, including by-products, stood at 281 MT for the third quarter, down from 383 MT in Q3 2022.

Despite challenges in the semiconductor segment and the solar market, REC Silicon said it is actively working on enhancing its operational position. It anticipates the restart of the Moses Lake facility, with the first silicon production expected this month and initial shipments in Q1 2024.

Polysilicon price fluctuations

In the third quarter, demand for Czochralski-grade semiconductor polysilicon continued declining as downstream wafer inventory stagnated.

Solar-grade polysilicon prices, both inside and outside China, experienced fluctuations. Inside China, prices increased from $8/kg at the beginning of the quarter to $9.5/kg mid-quarter, declining to $8.3/kg by the end of the quarter.

The price dynamics were influenced by the expansion of polysilicon plants in China, leading to oversupply and inventory growth, impacting purchasing decisions.

Conversely, polysilicon prices produced outside China saw a decline and differentiation between P-type and N-type polysilicon. P-type polysilicon dropped from over $30/kg to $22.7/kg, while N-type polysilicon reached $25.6/kg. Demand for N-type polysilicon increased as cell production shifted towards TopCon cell technology.

REC Silicon had recorded a net loss of $14.7 million during the Q2 2023, a YoY improvement of 37.7% from a loss of $23.6 million.

Earlier, the company had joined hands with Violet Energy Corporation to develop an integrated solar manufacturing supply chain.