Sneha Shah
Long/short equity, research analyst, tech, solar

Daqo New Energy: Survival Odds Are Low

Daqo New Energy (NYSE:DQ) is a small polysilicon producer based in China which also makes and sells a minor amount of solar wafers and ingots. This small company has been seriously hurt by the massive fall in the polysilicon prices in the last couple of years. The company has been forced to close its existing Wanzhou facility as it is no longer cost competitive. Polysilicon, which is used as a raw material by the crystalline silicon panel industry, has seen a polysilicon price crash, as prices have fallen from $400/kg during the solar boom in 2008 to around $15-20/kg now. This has made most of the polysilicon producers unprofitable as their costs lie somewhere between $20-30/kg. Many...

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