Chinese PV Industry Brief: Polysilicon Prices Remain Flat Amid Supply-Demand Rebalancing Signals

Why It Matters

Stable polysilicon pricing improves cost predictability for Chinese solar manufacturers, while the Huaneng‑Longi alliance could accelerate large‑scale renewable deployment and technology integration. Autowell's contract loss highlights policy‑driven volatility for international equipment suppliers.

Key Takeaways

• Polysilicon price flat at $4,840‑$4,980 per ton in May.
• Production 83,000 t aligns with wafer demand, easing inventory surplus.
• Huaneng and Longi partner on utility‑scale solar and storage projects.
• Autowell’s $55 million contract cancelled due to buyer’s policy shift.

Pulse Analysis

China’s polysilicon market has entered a rare equilibrium after months of price volatility. With domestic output projected at about 83,000 metric tons in May, manufacturers are seeing wafer operating rates rise just enough to absorb new supply, keeping the price range steady at CNY 35,000‑36,000 per ton. This balance reduces the need for aggressive inventory drawdowns and gives solar cell producers clearer cost forecasts, a crucial factor as global demand for PV modules rebounds.

The newly announced strategic partnership between China Huaneng Group and Longi adds a significant layer of depth to the renewable landscape. By combining Huaneng’s utility‑scale project expertise with Longi’s cutting‑edge BC cell technology, the duo aims to fast‑track large solar‑plus‑storage installations, intelligent power plants, and even green hydrogen hubs. Their commitment to expand under the Belt and Road Initiative signals a push to export Chinese solar capabilities, potentially reshaping renewable project pipelines across emerging markets and intensifying competition for Western developers.

Conversely, Autowell Technology’s termination of a CNY 400 million equipment supply deal underscores the fragility of cross‑border PV equipment contracts amid shifting policy environments. The cancellation, triggered by the buyer’s inability to meet final investment decisions and advance payments, reflects broader uncertainties for suppliers reliant on international customers. As governments recalibrate subsidies and trade policies, equipment manufacturers must diversify risk and adapt contract structures to safeguard revenue streams in an increasingly volatile market.