On December 24, China’s leading silicon material producers, Tongwei Solar and Daqo, separately announced production cuts.
Tongwei Solar stated that its polysilicon production capacity exceeds 900,000 tonnes. Due to the dry season in the southwest during winter and a rise in electricity prices, coupled with the overall photovoltaic (PV) industry continuing its bottom adjustment phase, Yongxiang, a subsidiary of Tongwei Solar, actively responded to the spirit of the Central Economic Work Conference by striving to eliminate “meaningless” competition and promote the long-term healthy development of the PV industry. Yongxiang will conduct technological upgrades and maintenance according to the company’s overall production and operation plan, resulting in phased and orderly production cuts.
Tongwei Solar also mentioned that during the shutdown and maintenance period, it will conduct comprehensive systematic checks and repairs on all production equipment at the affected production bases, and carry out some technological transformations. Meanwhile, it will organize technical training for employees at relevant production bases to continuously maintain and enhance the company’s leading competitive capability in the high-purity crystalline silicon project within the industry.
Daqo announced that it has formed an annual polysilicon production capacity of 305,000 tonnes. To strictly implement the spirit of the Central Economic Work Conference, regulate its own conduct, prevent “meaningless” competition, and promote the healthy and sustainable development of the PV industry, Daqo will gradually initiate phased maintenance on high-purity polysilicon production lines at its Xinjiang and Inner Mongolia production bases, resulting in orderly production cuts on some lines.
According to Daqo Energy’s analysis, this production cut and maintenance will result in a decrease in the company’s effective high-purity polysilicon production capacity and a corresponding reduction in the production and sales volume of its main products. However, from a holistic perspective, while improving the future stability and product quality of production facilities, this production cut and maintenance will help reduce operating costs and the company’s operating losses. Therefore, it is expected that this production cut and maintenance will not have a significant impact on the company’s production and operation.
Industry consulting body InfoLink believes that given the numerous uncertainties in 2025, it will take time to observe the execution capability of production quotas arising from industry self-regulation. Current prices are already at a low point, and under horizontal trading conditions, subsequent strategic changes by enterprises will be highly correlated with price movements. Therefore, it is still necessary to actively follow up on strategic adjustments by both buyers and sellers, especially as advance stocking during the January Spring Festival may affect market trends.
