Eight major domestic polysilicon manufacturers controlling over 90% of China’s operational polysilicon output jointly signed an industry self-regulatory commitment in Shanghai on August 6, vowing to halt all photovoltaic product transactions at prices under full production costs, amid nationwide official campaigns to eliminate ruinous price wars along the solar industrial chain.
Signatories include Tongwei, GCL Technology, Daqo New Energy, Xinte Energy, Asia Silicon, Xinjiang East Hope New Energy, Qinghai Lihao Clean Energy and Xinjiang Goens Energy Technology. Per the signed document, all sales and tender quotations from participating firms must comply with the newly rolled-out national General Rules for the Cost Accounting Model of the Photovoltaic Industry and avoid undercutting standard full costs.
Enterprises will conduct self-inspections on existing orders and product lines to rectify below-cost sales practices. The pact also mandates participants to report any suspected predatory pricing behavior to the China Photovoltaic Industry Association (CPIA) and relevant market supervision authorities.
This commitment arrives merely 10 days after the official release of the unified PV cost accounting standard on July 27. Led by CPIA and guided by the State Administration for Market Regulation (SAMR) and the Ministry of Industry and Information Technology (MIIT), the guideline unifies cost definition benchmarks, calculation coefficients and methodologies covering polysilicon, silicon wafers, solar cells and modules.
Regulatory intervention ramped up quickly thereafter. On July 31, market watchdogs hosted a price compliance seminar for core PV producers in Yancheng, Jiangsu, pushing manufacturers to optimize internal cost auditing and shift industrial competition focus from low-price bidding to technological advancement and product quality.
Beyond pricing constraints, the eight polysilicon firms pledged to phase out outdated production lines failing efficiency and technical benchmarks. This pledge aligns with China’s mandatory energy consumption standard GB 29447-2026 for polysilicon and germanium manufacturing, set to take effect January 1, 2027. High-energy-consuming facilities will face mandatory upgrades or permanent shutdowns to meet the new rules.
The coordinated action addresses over two years of severe polysilicon oversupply, which dragged raw material prices beneath most manufacturers’ full production costs and dragged leading players into heavy financial losses, prompting repeated industry efforts to stabilize supply and pricing.
Capital and commodity markets delivered an upbeat response to the regulatory and self-discipline measures on August 7. Tongwei’s stock surged 6.26%, GCL Technology’s Hong Kong-listed shares rose 8.96%, and Xinte Energy jumped 14.04%, as investors bet improved pricing discipline and capacity elimination will restore sector profitability.
Polysilicon futures also trended upward: the front-month benchmark contract climbed 2.95% to 37,040 yuan ($5,160) per ton on August 7. The futures price has rallied roughly 13.8% from 32,560 yuan per ton recorded right before the July 31 regulatory meeting, with traders pricing in tighter supply management and an upcoming spot price rebound.
