China Polysilicon Market Shows Signs of Recovery as Supply Cuts Loom

China’s polysilicon market showed early signs of improvement this week, with transaction activity picking up as producers prepare to reduce output and some downstream companies begin replenishing inventories.

Polysilicon Prices Remain Firm

According to the latest data released by Antaike on September 23, the average price of N-type granular polysilicon was RMB 40,300/ton, while N-type rod silicon averaged RMB 43,000/ton.

Around three to four producers completed transactions during the week, with actual trading volume increasing from the previous week. Polysilicon producers are maintaining firm pricing, generally using full production costs as the minimum price level.

Supply Cuts Expected from October

As production adjustment plans become clearer, the industry expects overall operating rates to fall to around 35% from October. The anticipated supply contraction has encouraged some downstream manufacturers to begin restocking.

However, large-scale purchasing has not yet resumed. Most downstream companies still hold some raw material inventory and are mainly buying to meet immediate needs.

Exports Continue to Outpace Imports

China imported 695.1 tons of polysilicon in August, down 12.1% year on year, while exports reached 3,238.4 tons, up 38.1%.

With production cuts expected to take effect from October, the market will closely watch actual operating rates, the sustainability of spot transactions and the recovery of downstream demand.