Eight Chinese Polysilicon Makers Pledge No Sales Below Full Cost
Eight major Chinese polysilicon producers, representing more than 90% of domestic effective capacity, signed an anti-involution initiative on August 6 pledging not to sell photovoltaic products below fully loaded cost as calculated under the industry's standard cost accounting model. The move came one week after the State Administration for Market Regulation issued price compliance guidance for the solar sector on July 31. Signatories include Tongwei, GCL Technology, Daqo Energy and Xinte Energy, plus four other producers.
On the evening of August 6, eight major domestic polysilicon companies jointly signed the anti-involution "Initiative" in Shanghai. The signing came just one week after the State Administration for Market Regulation issued price compliance guidance for the photovoltaic industry on July 31. The eight companies collectively account for more than 90% of China's effective polysilicon capacity, comprising four listed companies — Tongwei Co. , GCL Technology, Daqo Energy and Xinte Energy — as well as Asian Silicon (Qinghai) Co. , Ltd. , Xinjiang East Hope New Energy Co. , Qinghai Lihao Clean Energy Co. , and Xinjiang Gones Energy Technology Co.
Under the initiative, the companies jointly pledged that all photovoltaic product sales prices (including tender and bid quotations) shall not fall below the corresponding costs calculated in accordance with the group standard "General Rules for Cost Accounting Models in the Photovoltaic Industry." Any sales made below fully loaded cost must be halted and corrected immediately, with the companies voluntarily accepting inspection and supervision by market regulation authorities at all levels. The companies will strengthen mutual oversight and, upon discovering illegal below-cost sales, will promptly report them to industry associations and the State Administration for Market Regulation.
In addition, the companies committed to strictly implementing new energy consumption standards and proactively phasing out outdated high-energy-consumption capacity.
Why this event matters
The event has a measured impact on 1 industry. The strongest current signal is positive for Wind & Solar Equipment, with intensity 80/100 and 80% confidence over a short term horizon.
Impact figures are analytical estimates that combine direction, intensity, confidence and event importance. They are not investment advice.