China’s Polysilicon Market Shaken As Leaked Regulatory Meeting Triggers Sharp Futures Drop

Polysilicon futures fell sharply on January 8, hitting the daily limit down of 9 percent after a leaked meeting summary began circulating in the industry. According to information obtained by Securities Times reporters, the document outlines a January 6 meeting held by the State Administration for Market Regulation with the China Photovoltaic Industry Association and several major polysilicon companies, including Tongwei, GCL, Daquan, Xinte, Asia Silicon, and East Hope Group. The meeting reportedly focused on monopoly risk warnings, required rectification measures, and the need for companies to follow regulatory guidance.

Industry insiders contacted by reporters did not deny the authenticity of the leaked minutes, suggesting that the discussions likely took place as described. One company representative stated that the firm will strictly comply with instructions from regulatory bodies and will conduct self-discipline in line with national requirements linked to reducing unhealthy competition in the sector. The representative emphasized that any information requiring official disclosure will be released truthfully and promptly, and that only government and enterprise announcements made legally and in compliance with regulations should be considered accurate.

Market observers believe the drop in polysilicon futures was directly influenced by the leaked meeting notes, which raised concerns about potential regulatory action on pricing and market behaviour. Some industry participants said that the government’s push for “anti-involution” in the photovoltaic sector is expected to succeed, though the mechanisms may evolve. They suggested that polysilicon pricing may shift back toward a marginal cost model, creating a more rational market environment and supporting a clearing process driven by supply and demand.

The situation reflects ongoing efforts by Chinese authorities to stabilize the photovoltaic supply chain and address price distortions that have impacted the market in recent years. As the industry awaits formal announcements, companies are preparing for adjustments and increased regulatory scrutiny aimed at promoting orderly competition and long-term sustainability.