Markets
Chinese solar manufacturers weigh price floors
Major Chinese polysilicon producers have met in Hangzhou to discuss minimum pricing and output curbs.
Key points
- Eight major Chinese manufacturers met in Hangzhou to address overcapacity.
- Producers proposed a minimum price of CNY 43,000 per metric ton.
- Futures trading remains below the proposed price floor amid rising inventories.
Meeting in Hangzhou
According to pv magazine, eight major Chinese polysilicon firms gathered behind closed doors in Hangzhou to evaluate strategies for limiting below-cost sales and curbing production. Companies involved include Tongwei and GCL Technology. This follows an earlier industry self-discipline pact signed in Shanghai by firms representing over 80 percent of domestic capacity.
Participants proposed a tax-inclusive price floor of CNY 43,000 per metric ton for both granular silicon and conventional Siemens-process material. Local media also indicated discussions around minimum thresholds for module types, though these figures lack official confirmation.
Market Pressures
Despite these discussions, market realities continue to challenge price control efforts. Exchange data showed active contracts trading well beneath the suggested minimum threshold, driven by high inventory levels and sluggish downstream demand. The Silicon Industry Branch of the China Nonferrous Metals Industry Association projected a reduction in domestic output as operating rates decline.
Regulatory authorities previously raised antitrust concerns regarding coordinated pricing and output strategies, prompting the industry to center its recent focus on cost-accounting standards rather than binding quotas.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Exchange rates and the cost of capital shape every energy project, especially in emerging markets where equipment is priced in dollars.
₦1,331.19 per US dollar, reference rate todayCountries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
