China Polysilicon Prices Remain Stable Amid Persistent Inventory Pressure

Polysilicon Prices Hold Steady

China’s polysilicon prices remained unchanged this week, according to the Silicon Industry Branch on October 14. N-type mono-grade polysilicon (rod silicon) averaged RMB 43,000 per ton, while granular silicon traded at RMB 40,000–41,000 per ton, with an average price of RMB 40,300 per ton.

Actual transactions involved only two to three companies, with volumes largely unchanged from the previous week.

Production Cuts Begin to Take Effect

Production cuts announced by polysilicon manufacturers have gradually entered implementation since October, signaling a potential reduction in supply. However, the scale and duration of these cuts remain uncertain. Manufacturers continue to resist selling below full production costs, while downstream buyers maintain a cautious, needs-based purchasing strategy.

Inventory Pressure Persists

China produced 120,400 tons of polysilicon in September, while wafer production reached 55.27 GW, requiring an estimated 94,000 tons of polysilicon. Including imports and exports, inventory increased by approximately 24,000 tons during the month, bringing industry-wide stocks to around 572,000 tons by the end of September.

October polysilicon output is forecast to decline to approximately 105,000 tons. However, estimated monthly demand is also expected to fall to around 86,000 tons, suggesting that inventories may continue to rise.

Market Outlook

Although production cuts are beginning to reduce supply, the market remains oversupplied. The sustainability of current prices will depend on how effectively manufacturers implement output reductions and whether downstream wafer producers increase their purchases.

A meaningful recovery in demand will be essential to ease inventory pressure and support a more stable polysilicon market.