China’s eight biggest polysilicon makers just agreed to stop selling solar products below cost, a direct attempt to end the price war that has gutted the industry.
Under the deal, signed the night of August 6 in Shanghai, Tongwei, GCL Technology, Daqo and Xinte Energy, joined by four smaller producers, pledged not to sell poly or module-grade product, including in bids, any cheaper than it costs to make. The pact covers more than 90% of China’s effective capacity.
Markets liked it immediately. Tongwei jumped about 6.3%, GCL gained around 9% in Hong Kong and Xinte rose more than 14%. Polysilicon futures climbed nearly 3% to roughly ¥37,000 a ton, about 14% above late-July levels.
The deal follows a July 31 compliance meeting at China’s market regulator, SAMR, and is the latest step in Beijing’s effort to force discipline on an oversupplied sector.
For overseas buyers the stakes are real. If Chinese producers hold the line against below-cost bids, cheap module pricing tightens and the aggressive export prices used to clear overcapacity start to disappear.
Covered independently by pv-magazine, PV Tech and Shanghai Securities News.