China’s polysilicon majors move to curb below-cost selling

What changed

Eight of China’s largest polysilicon producers signed an industry initiative on 6 August pledging not to sell below full cost. Together, the signatories are estimated to represent more than 90% of effective Chinese polysilicon capacity.

The commitment follows a new industry cost-accounting framework and stronger regulatory pressure against destructive price competition. A mandatory energy-consumption standard for polysilicon production is also due to take effect on 1 January 2027.

Why it matters

The combination of cost-based selling, regulatory oversight and stricter energy-efficiency thresholds could accelerate the retirement or upgrading of high-cost capacity. That may support a more disciplined supply side after a prolonged period of oversupply and producer losses.

This is not yet proof of a durable price recovery. Voluntary commitments only matter if they change tender behaviour, operating rates and actual spot transactions.

Commercial signal to watch

Buyers and sellers should monitor whether polysilicon and module quotations hold above recent lows, whether inefficient capacity is genuinely withdrawn, and how quickly any raw-material movement is reflected in module prices. Existing inventory may also be valued differently if the market begins to expect firmer replacement costs.