The recent appreciation of the US Dollar against the currencies of a number of other silicon-producing countries will exert downward pressure on silicon prices in US Dollar-terms through 2016. Rising silicon demand will trigger a gradual recovery of prices in 2017-2019, which will support required investment in new silicon capacity.

Executive Summary 1

Chapter 1 Demand 11

1. Overview by major consuming sector 12

      1.1 Solar sector fuels gains in chemicals-related demand 12

      1.2 Silicon use in aluminium linked to auto production 12

2. Overview by major geographic market 13

3. Silicon consumption by major country and region 15

      3.1 US demand at an all-time high 15

      3.2 A slow but steady recovery in European demand 17

      3.3 Significant 2014-2015 contraction in Russian demand 20

      3.4 Asia drives growth in global demand 22

      3.5 Silicon demand in the Middle East is nearing six digits 30

4. Total world consumption 31

5. Methodology 33

Chapter 2 Supply 35

1. Production by country and company 36

      1.1 Americas – Brazilian production is still falling 36

      1.2 Norway and France propel European output 39

      1.3 Production in the CIS is rebounding 40

      1.4 China continues to dominate Asian and global supply 41

      1.5 FerroAtlantica, Elkem and Dow Corning stay on top 45

2. Production capacity 46

      2.1 Asia/Pacific leads growth in non-Chinese capacity 46

      2.2 Large and diverse pipeline of new silicon projects 51

      2.3 Substantial new capacity still being added in China 55

Chapter 3 Balances 57

1. Inventories 58

2. International trade 59

      2.1 China will remain the dominant exporter 59

3. Supply/demand balance 65

      3.1 Capacity utilisation to rise again from 2016 onwards 65

      3.2 Capacity requirements jump in 2018-2019 67

Chapter 4 Prices 69

1. Recent price developments 70

      1.1 US Dollar based prices under pressure 70

      1.2 Quality premiums are increasing 72

2. Price projections 73

      2.1 Outlook shaped by demand and production costs 73

      2.2 Prices will decline through 2016 before rebounding 76

Appendix A Industrial and economic outlook, 2015 – 2019 79

Appendix B Chinese capacity 107

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