Recently, Daqo New Energy conducted on-site institutional research and participated in online meetings and strategy sessions.
Regarding price trends, Daqo New Energy analyzed that from a supply and demand perspective, most polysilicon companies in China have been operating at low capacity since 2025, and polysilicon supply is expected to continue decreasing. Meanwhile, the supply and demand situation in the polysilicon and wafer markets has been basically balanced for the month. In terms of inventory, signs of inventory reduction have emerged, and overall industry inventory pressure has eased. From a policy perspective, driven by the market-oriented reform of new energy feed-in tariffs, a policy window may trigger a mid-year “rush to install” among end-users, boosting polysilicon demand temporarily.
The company believes that these factors provide support for polysilicon price increases. However, existing production capacity and inventory limit the extent of price increases. Overall, it is expected that polysilicon prices will have some room for growth in the future, and recent polysilicon contract prices have shown a steady increase.
As for its business strategy, Daqo New Energy stated that the company will carefully formulate its next production plan based on future market dynamics, product prices, and industry trends. Given the current market environment, the company currently expects its polysilicon production for the first quarter of 2025 to be approximately 25,000 to 28,000 tons and plans to maintain a relatively low operating rate throughout 2025 until the industry reaches an inflection point.
Additionally, Daqo New Energy revealed that industry inventory, including that of polysilicon companies, wafer companies, and spot and futures traders, totals about 400,000 tons, with the company’s inventory equaling about two months’ production.
