Chinese PV Industry Brief: polysilicon market shows tentative recovery as wafer prices surge

The Silicon Industry Branch of the China Nonferrous Metals Industry Association (CNMIA) said on Aug. 19 that activity in China’s polysilicon market had begun to recover slightly after virtually no transactions or public quotations in early August. A small number of orders were concluded during the week, although a broader public pricing system has yet to return and the market remains in a tentative transition phase. Reference prices for n-type dense polysilicon were CNY 40 to CNY 42 ($5.95 to $6.25) per kilogram, with some producers testing offers as high as CNY 43/kg ($6.40/kg). Actual transaction volumes remained limited, mainly involving restocking by long-standing customers and deliveries linked to futures warehouse receipts. The association expects domestic polysilicon production to exceed 110,000 metric tons in August. The association said on Aug. 20 that wafer prices had risen sharply during the week. The average transaction price for n-type G10L mono wafers (182 × 183.75 mm, 130 μm) reached CNY 1.12 ($0.17) per piece, up 40% week on week. N-type G12R wafers (182 × 210 mm, 130 μm) averaged CNY 1.14 ($0.17), up 26.67%, while n-type G12 wafers (210 × 210 mm, 130 μm) averaged CNY 1.22 ($0.18), up 10.91%. The association attributed the surge primarily to a sudden increase in downstream demand. It said overseas cell manufacturers accelerated wafer purchases during a policy window in response to potential trade risks arising from US Section 232 tariffs, while the start of India’s traditional installation season further boosted export demand. Operating rates remained broadly unchanged, with two leading wafer producers running at 52% and 54%, vertically integrated manufacturers at 56% to 60%, and other producers at 50% to 78%.

Daqo New Energy reported second-quarter 2026 revenue of $62.7 million, up from $26.7 million in the first quarter, as polysilicon sales increased significantly. Sales reached 15,190 metric tons (MT), compared with 4,482 MT in Q1, although the average selling price fell to $4.04/kg from $5.96/kg. The company reported a net loss attributable to shareholders of $81.2 million, narrowing from $88.4 million in Q1. Polysilicon production reached 43,675 MT, while production costs remained above selling prices at $5.95/kg. Daqo said it expects to produce 40,000 MT to 45,000 MT of polysilicon in the third quarter and maintains its 2026 production target of 160,000 MT to 180,000 MT. The company said it continues to expect market conditions to improve as industry efforts to reduce overcapacity and address persistent oversupply take effect.

Hangzhou First Applied Material (FIRST) released its first-half 2026 financial results on Aug. 20. The company reported revenue of CNY 6.988 billion ($1.04 billion), down 12.2% year on year, while net profit attributable to shareholders rose 69.89% to CNY 842 million ($125.2 million). Operating cash flow was positive at CNY 1.281 billion ($190.5 million). FIRST sold about 1.22 billion square meters of PV encapsulation film during the first half, down 11.97% year on year, generating revenue of CNY 6.133 billion ($912.2 million), down 15%.

DR Laser said in an Aug. 19 investor relations filing that market acceptance and penetration of back-contact (BC) technology continue to increase, supported by its higher conversion efficiency and module performance. The company expects demand from new BC capacity and upgrades or expansions of existing production lines to total 40 GW to 50 GW in 2026.