Polysilicium, which is used in the production of solar collectors, is still as cheap as fries and module prices remain incredibly low. These are great news for solar buyers, not so good for manufacturers.
Solar polysilicium is a high purity of silicon, which is used as the base material in the production of solar cells. China is the dominant source, which produces an estimated 83 percent of the global polysilicium in 2022.
China’s Daqo, one of the world’s largest producers of solar polysilicon, has to long for the comparatively exhilarating days less than three years ago than the decisive material collected more than $ 36 per kilogram. Thanks to the oversupply and the resulting CUT-Throat price competition, the times are now very slim for the company and his colleagues.
This week Daqo released its unchecked Q1 2025 results – and they are not pretty. Some highlights (if you can call them that):
- The production volume was 24,810 MT compared to 34,236 MT in the fourth quarter of 2024.
- The sales volume reached 28,008 MT in the first quarter of 2025 in the fourth quarter of 2024 in the first quarter of 2025.
- The average production costs of polysilicone production were $ 7.57/kg in the last quarter, compared to USD 6.81/kg in the fourth quarter of 2024.
- The average sales price was 4.37 USD/kg in the first quarter of 2025, compared to USD 4.62/kg in the fourth quarter of 2024.
The company’s turnover in the first quarter this year was $ 123.9 million compared to $ 195.4 million in the fourth quarter of 2024. In the previous year, the company generated sales of $ 415.3 million. At this point, Daqo had a cash balance of 2.7 billion US dollars, but until the end of the first quarter of 2025, which was on 853 million dollars.
CEO of Daqo New Energy, Xiang XU, said that the company was undertaken to reduce the usage rate of its nominal production capacity of approx. 33% in the second quarter in response to challenging market conditions and weak sales prices.
Mr. XU remains optimistic about the future of the company – not that you would expect that he would be different.
“This year is a challenge for the Chinese Solar PV industry. At that time we may have reached a cyclical soil, but not yet a clear turning point on the market,” he said. “As one of the least cheapest manufacturers worldwide with the N-product of the highest quality, strong balance and without financial debt, we are of the opinion that we are well positioned to survive the current market depression and to accept future growth as one of the leading companies in the industry.”
With a view to the front, DAQO expects 25,000 to 28,000 MT polysilicon production and around 110,000 MT to 140,000 MT for the entire year from 2025.
Loss of producer is the buyer gain
There is much more on a solar panel than just polysilicon, and it’s not just polysilicium producers who have a hard time.
Most Chinese companies that are involved in the production of Solar Panel make it difficult to set it up with the ruthless competition between the producers – even in view of a Floor -Limit set for module prices set out last year. Large manufacturers such as Longi, Jinkosolar, Trina Solar and yes solar have reported all significant losses for the first quarter.
For the time being, Australians who buy solar modules are the big winners because the prices for solar power systems for good installations remain comparatively low, especially thanks to the cheap PV panel price from dirt. While the price movements of the Major Upward module are not on the horizon, the best time to go solar is usually right now. Every day without a system, another day means that the electricity costs for the power supply strength are higher than usual.
But there are potential pitfalls; Especially with (also) cheap systems. Read the comprehensive, easy-to-understand solar 101 guide from SQ founder Finn before finding yourself for installation on the dotted line and registering that inform you about the purchase of solar on the roof.
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