A new round of polysilicon capacity restriction plans is in the pipeline, and supply-side contraction may intensify.

The reporter learned from sources at relevant companies that on October 11, leading photovoltaic enterprises such as Tongwei Co., Ltd. and GCL Technology held a meeting in Hangzhou. The meeting revealed several key points. First, a plan to further implement capacity restrictions was formed, and through market-based adjustment mechanisms, enterprises will be encouraged to coordinate independently and proactively suppress their own capacity in accordance with total market demand. Second, a mutual supervision mechanism was clearly established all enterprises reached a consensus to encourage proactive reporting of behavior that violates national regulations on low-price dumping, maliciously disrupts market economic rules, or disturbs industry order. It is understood that the meeting also set clear price floors for polysilicon and modules. Specifically, the average tax-inclusive cost price of silicon materials shall not be lower than 43,000 yuan/ton; the price of BC modules shall not be lower than 0.86 yuan/W, and TOPCon modules shall not be lower than 0.79 yuan/W. In addition, prices for export products as well as in social procurement and bidding processes shall also not fall below the above floors. Institutions judge that in October, production reduction plans by various enterprises will gradually enter the implementation stage, the intensity of supply-side contraction is expected to increase, and the oversupply situation is expected to ease. In the later period, attention needs to be paid to the actual implementation intensity of production cuts, the pace of downstream restocking, and the role of spot transactions in verifying the price system.