Ming Yang: Okay. So actually, interestingly, silicon metal cost in Q4 of last year was substantially higher than Q3 of last year primarily due to higher energy costs within China. And silicon metal price recently declined in January of this year. And now it is a little bit on the trends. rising trend, but we haven’t really seen any significant increase of silicon metal cost due to the issue with the . That’s what we’re seeing currently. So as a result we do think our Q1 costs should be relatively stable compared to our Q4 costs.
Unidentified Analyst: Thank you so much. That’s clear. My second question is on can you share a little bit color on the industry inventory level of polysilicon? Thank you.
Longgen Zhang: Industry inventory level for polysilicon?
Unidentified Analyst: Yes.
Longgen Zhang: I think the — China as you know, that every month, our production output is around 1,000 ton. And for the inventory as everyone, but I think the end of last year, the inventory is around less than 50,000 ton. The reason is because continue vertically integrated. And also, I think just material outside to do the processing, and then take the wafer back continue to produce sales. So because I think the market come back to normal, I think Tongwei and I think the inventory gradually . So if you ask me, by the end of Q1, how much inventory is there? I think it should be less than 50,000 ton.
Unidentified Analyst: Thank you. . My first — my third question is on technological development. We noticed that technology over first quarter of this year. How do you expect the competitiveness of use in comparison with the SDR granular silicon . Thank you.
Ming Yang: Okay, hello. So I Believe your question is, for example, granular silicon SDR process versus our CMOS, traditional CMOS process, right?
Unidentified Analyst: Yes.
Ming Yang: Okay. So I’ll take it from two perspective, okay. So, I think one is really from quality perspective, okay. The SDR process, because it has much higher contamination of both hydrogen and also because of uses of graphite stacks for heating. So, a lot higher carbon contamination as well as because of the high surface area compared to the interesting area of much higher surface metal contamination. So, if you compare the quality of the CMOS, advanced CMOS process especially in high purity supplies like compared to a typical SDR type of process, our purity is around 100x higher, okay. So a lot of our purities are now on the parts per billion, parts per level, right. So from a purity perspective, I think if you look at what’s happening in the market is that company — our customers will use our product as their primary use of silicon and SDR only generally used to as a mix because that’s what I think.
So, I think, SDR as the market grows, I think it does have a relatively more limited addressable market. And then in terms of cost structure, I think, even ideally, if you’re talking about maybe saving 20 to 30 kilowatt hour of electricity, you’re talking about RMB6 to RMB8 per kilogram of cost reduction. But what we’re seeing in the market is that generally offers between RMB15 to RMB20 or more in cost discount or price discounts. So I think that’s fully reflected in that kind of environment.
Unidentified Analyst: Thank you. My last question, and I will jump back to the queue. Can you share with us the price premium of N type polysilicon over P type polysilicon right now, either in like absolute terms or percentage terms? And where do you expect ? Thanks.
