"OCI Starts Polysilicon Price Increase...Target Price Up 9%"

[Asia Economy Reporter Park Jihwan] Mirae Asset Daewoo on the 19th raised its investment opinion on OCI to 'Buy' and increased the target price by 9% from the previous 87,000 KRW to 95,000 KRW, stating that "the rebound in polysilicon prices has begun."

Park Yeonju, a researcher at Mirae Asset Daewoo, stated, "OCI is expected to see continued strength in polysilicon prices in the first quarter of next year, and the rise in oil prices is also expected to improve the performance of carbon chemicals and energy solutions."

In particular, active implementation of eco-friendly policies not only in Korea but also globally is acting as a positive factor. Recently, the United States is considering extending tax benefits for solar installations as part of its economic stimulus measures.

Due to a shortage of solar glass in the fourth quarter, demand this year has been delayed to 2021, leading to forecasts that solar demand next year will be stronger than expected.

Researcher Park emphasized, "After a sharp rise in the third quarter followed by a correction, polysilicon prices have started to rebound," adding, "Installation demand is stronger than expected, and major customers such as Wunggi Silicon materials appear to plan aggressive expansion of wafers, cells, and modules in the future."