Eight major Chinese polysilicon manufacturers, including Tongwei and GCL Technology, met behind closed doors in Hangzhou on Oct. 11 to discuss measures to curb below-cost sales and reduce output amid persistent overcapacity.
The meeting followed an industry self-discipline agreement signed in Shanghai on Aug. 6 by the same companies: Tongwei, GCL Technology, Daqo New Energy, Xinte Energy, Asia-Silicon, East Hope, Qinghai Lihao and Xinjiang Goens. Together, they account for more than 80% of China’s effective polysilicon production capacity.
Shanghai Securities News and Xinhua Finance, citing participating companies, reported that the Hangzhou meeting proposed a tax-inclusive minimum price of CNY 43,000 ($6,324) per metric ton for both conventional Siemens-process polysilicon and granular silicon.
The proposed threshold reflects production costs, including raw materials, electricity, depreciation and labor. Participants also reportedly discussed applying cost-based pricing principles to exports, procurement and tenders.
Local media reported separate proposed minimum prices of CNY 0.86/W for back-contact (BC) modules and CNY 0.79/W for TOPCon modules, although the companies have not confirmed these figures.
Participants also purportedly discussed adjusting production independently in response to market demand and encouraging reports of suspected below-cost sales. No binding output quotas, company-specific reduction targets or enforcement mechanisms have been disclosed.
Meanwhile, polysilicon futures remained well below the proposed price floor. On Oct. 15, the most-active contract, PS2611, closed at CNY 33,255 per metric ton on the Guangzhou Futures Exchange, down 4.58% on the day.
Weak downstream demand and rising inventories continued to pressure prices. The Silicon Industry Branch of the China Nonferrous Metals Industry Association (CNMIA) estimated September polysilicon output at 120,400 metric tons and projected a decline to around 105,000 metric tons in October as producers reduced operating rates.
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