Silicon Industry Branch comments on the market overview of polysilicon in the first half of the year: starting at a low level to reduce inventory, multiple measures are needed.

In the first half of 2025, the prices of the polysilicon industry chain continued to be lower than the cost, leading to widespread losses among companies. The operating rates of polysilicon, industrial silicon, and silicon wafers fell to historic lows of 41.9%, 38.6%, and 44.3% respectively, with a monthly average output of only 100,000 tons. The lowest operating load of the top five companies was only 24.1%. Production cuts reduced inventory from a high of 398,000 tons at the end of 2024 to 367,000 tons by the end of June, with a decrease of 31,000 tons in the first half of the year. Price trends followed a pattern of "steady before falling": prices rose slightly from January to April to stabilize at 40,600-41,700 yuan/ton, then dropped to 34,400 yuan/ton from late April to the end of June, with an average price of 36,800 yuan/ton for the first half of the year, a year-on-year decline of 28.8%. It is estimated that domestic production will be 1.35 million tons for the whole year, and if production resumes as planned in the second half of the year, inventory will increase by another 30,000 tons for the year. The industry is intervening through measures such as anti-involution, capacity consolidation, and performance standards to promote the adjustment of supply and demand dynamics and structural reshaping.