Eight leading Chinese polysilicon producers reportedly discussed a minimum price of CNY 43,000 ($6,324) per metric ton and further output cuts at a closed-door meeting in Hangzhou. The proposals come amid persistent oversupply, weak demand and regulatory scrutiny of industry coordination.
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.
The Hangzhou meeting follows nearly two years of industry efforts to address the supply-demand imbalance. After sharp price declines and widespread manufacturing losses in 2024, leading producers pursued voluntary output cuts and consolidation plans in 2025. In December 2025, several manufacturers established a joint platform to facilitate the acquisition and retirement of excess capacity.
The initiative faced regulatory scrutiny in January 2026, when China’s State Administration for Market Regulation summoned leading producers over antitrust concerns and warned against coordinated agreements on capacity, output and prices.
The industry subsequently shifted its focus toward cost-accounting standards and voluntary commitments to avoid below-cost sales, leading to the August agreement and the latest discussions in Hangzhou.
The impact of these measures remains uncertain. Recent reports from TrendForce and the Silicon Industry Branch indicate that polysilicon inventories continue to rise in China, with weak downstream demand limiting the effectiveness of voluntary production cuts.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: [email protected].