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Korean poly giant OCI returns to profitability but decent margins still far away

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OCI gave decent profits & revenue numbers

Korean giant OCI has returned to profitability in its poly division after a couple of bad years. The company saw revenues of $500 million in the current quarter from poly sales. The company even reported a profit margin of 2.6%, as sharp cost cuts as well as better utilization helped the company.

The poly industry has been having a very rough time as severe overcapacity has dropped prices below the cost of operations. The poly price has now stabilized in the $20/kg range, after falling to as low as $15/kg. Most poly manufacturers are only being able to breakeven at this price. Most of the smaller ones have shut down completely and only the big daddies such as GCL-Poly, OCI, Hemlock and Wacker are competing. These companies are only starting to see high utilization now, as demand has increased tremendously due to price elasticity.

Global Poly Scenario

Some of the companies have also started to think about expanding their capacities, as the global market see 20% plus growth. However, newer players in the Middle East are also planning to enter the market. This could dampen the up cycle for poly players. The companies need to rationalize on their expansion, otherwise they will not see normal margins.

OCI Outlook

OCI may not be a great investment, given that it could come under pressure from China which is the biggest consumer of polysilicon. OCI has diversified into downstream solar plant development with a 400 MW project in Texas under construction. But the company needs to be more aggressive as other solar panel players have entered project to boast off, which maybe not be good enough for investors.


Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

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