Despite the United States tightening import regulations on polysilicon and related products, prices for polysilicon in China have surged.
According to Shanghai Metals Market (SMM) on August 17, the price of N-type recovery polysilicon rose by 0.95 yuan to 40.4 yuan per kilogram, while N-type dense polysilicon increased by 1 yuan to 40 yuan.
On August 14, polysilicon prices jumped by 23.8%, recovering to around 39,000 yuan per ton, which has led to a price increase across the entire solar value chain, including wafers, battery cells, and solar glass.
The immediate cause of this price surge is the Chinese government's supply reduction policy. The Chinese solar industry has been experiencing prolonged price competition, with products being sold below cost due to oversupply. In response, the Chinese government has intervened this year to encourage production cuts in the solar sector. The government is tightening energy consumption standards and pushing for the exit of outdated production capacities.
Eight major polysilicon manufacturers in China announced earlier this month that they would stop selling below cost and strictly adhere to energy consumption standards. These companies account for over 90% of China's effective polysilicon production capacity, suggesting a significant impact from the supply reduction.
In the stock market, Chinese solar stocks have shown strong upward momentum. Since July 21, the solar index on the Chinese stock market has risen by more than 14%, with some stocks recording increases of over 40%.
Meanwhile, the recent surge in polysilicon prices in China is considered unrelated to the recent U.S. import restrictions. On August 6, President Donald Trump signed an executive order introducing a minimum import price and imposing an additional 15% tariff on polysilicon and related products under Section 232 of the Trade Expansion Act. This measure is set to take effect on December 4.
The U.S. has already imposed high tariffs on Chinese polysilicon and other solar products, applying regulations related to forced labor to limit the entry of Chinese products into the U.S. market. As Chinese polysilicon products are effectively not being imported into the U.S., the impact of this measure on Chinese companies is expected to be minimal.
* This article has been translated by AI.
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