The photovoltaic industry continues its anti-involution process, resulting in a stark contrast in performance across the supply chain: The rebound in polysilicon prices in the third quarter provided some relief for upstream polysilicon companies, leading to a recovery in their profitability. However, downstream cell and module prices saw limited increases, and profitability remained under pressure. While polysilicon prices eased, modules faced the dual pressures of rising costs and weak demand.
In the first to third quarters, Daqo Energy’s unit sales price (excluding tax) for polysilicon was RMB 31.77/kg, RMB 30.33/kg, and RMB 41.49/kg, respectively. Unit costs (including sales and freight costs) were RMB 53.08/kg, RMB 58.15/kg, and RMB 46.04/kg, respectively. The amount of inventory write-downs previously accrued, which were reversed in the current period due to sales, is not included in the unit cost.
As an upstream segment of the industry chain, the polysilicon segment has a relatively high concentration and was the first to see a price recovery after the anti-involution upgrade.
It is expected that module prices will remain largely stable in the latter half of the month as overall domestic demand gradually weakens. By the end of the year, with demand further weakening, market focus will shift to order signing and production arrangements for the first quarter of next year.
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