GreenergyDaily

Jul. 10, 2025

Polysilicon prices in China jumped the most in almost two years after a broad pledge by the country’s top leadership to curb competition among businesses boosted optimism in the outlook for the industry.

While the vow by Beijing last week didn’t specify sectors, there’s some speculation that solar will be included in the government campaign. Polysilicon prices rose between 6.3% and 6.9% in the week through Wednesday, according to data from an industry association, the most since August 2023.

China's solar industry is grappling with overcapacity and fierce competition, with a slew of measures since late last year to reduce output and set a price floor so far failing to halt losses.

“We believe the target from the government is just to end the price war, not to help the industry average selling price to recover,” said Dennis Ip, an analyst at Daiwa Capital Markets. “And we believe the market has not realized that.”

The nation’s polysilicon sector still needs a “critical stage” of deep adjustment and capacity liquidation, according to the China Silicon Industry Association, which provides data on prices. The group said the most expensive N-type material was priced at 37,100 yuan ($5,169) per ton, the highest since June 4.

China’s Ministry of Industry and Information Technology also held a meeting with 14 solar companies last week, pledging to strengthen its guidance for the industry to help solve its “urgent problems,” according to a statement. The gathering, which was attended by Minister Li Lecheng, added to optimism about government measures to address overcapacity.