Polysilicon Industry Leader Suddenly Cuts Production; Industry Self-Discipline Expected to Drive Price and Profit Recovery

On the evening of December 24, Tongwei Co., Ltd. and Daqo New Energy suddenly announced on their official WeChat accounts that, in active response to the spirit of the Central Economic Work Conference and to eliminate "cut-throat competition," the two polysilicon companies would implement orderly production cuts and capacity control. Currently, Tongwei Co., Ltd.'s polysilicon capacity exceeds 900,000 mt, while Daqo New Energy has established an annual polysilicon capacity of 305,000 mt, bringing the total capacity of the two companies to over 1.2 million mt.

On December 6, several PV companies signed a self-discipline agreement to regulate capacity starting next month. A research report by Huachuang Securities pointed out that, under the current challenges, companies within the industry have realized that cooperation and self-discipline are the only ways to achieve self-rescue. If the subsequent implementation of the industry's self-discipline agreement proceeds smoothly, the current supply and demand surplus is expected to ease significantly, driving price and profitability recovery.

According to the thematic database of Caixin Media, among the related publicly listed firms:

Yubang New Materials focuses on the R&D, production, and sales of PV welding strips. After more than a decade of effort, it has become one of the leading suppliers of PV welding strip products in China.

Tongwei Co., Ltd. As of H1 2024, it had established an annual high-purity silicon capacity exceeding 650,000 mt. According to the company's capacity planning, its high-purity silicon capacity is expected to reach 800,000-1 million mt during 2024-2026.