Solar Silicon Material Producers Agree on Pricing Practices
China's eight major polysilicon manufacturers have signed an agreement pledging not to sell products below cost, aiming to curb internal market competition.
Eight of China's largest polysilicon producers have collectively signed an initiative aimed at curbing excessive internal competition, agreeing not to sell their products below calculated production costs. The agreement, signed in Shanghai on August 6, follows recent regulatory guidance from China's State Administration for Market Regulation (SAMR) on pricing compliance within the photovoltaic industry.
The participating companies collectively account for over 90% of China's effective polysilicon production capacity. These include publicly listed firms Tongwei Co., GCL Technology, Daqo New Energy, and Xinte Energy, along with Asia Silicon, Xinjiang East Hope New Energy, Qinghai Lihow Qingneng, and Xinjiang Gounes Energy Technology.
The producers have committed that all photovoltaic product sales, including tender bids, will not be priced below the corresponding costs calculated according to the industry group standard "General Principles for Photovoltaic Industry Cost Accounting Model." Any sales below full cost must be immediately stopped and corrected, with companies agreeing to accept supervision from market regulation authorities. They also pledge to monitor each other and report any violations.
Furthermore, the companies have agreed to strictly implement new energy consumption standards and actively phase out high-energy-consuming, outdated production capacity. This move is intended to promote higher-quality development and more orderly competition within the sector.