Industry Insights
SILICON MARKET STRENGTHENS AS SUPPLY DISCIPLINE TIGHTENS
INDUSTRY INSIGHTS :
China’s silicon market showed signs of recovery in August 2026, supported by tighter supply, production adjustments, and stronger pricing across the silicon and solar value chains.
HIGHLIGHTS:
- Silicon metal prices strengthened in August amid expectations of production cuts at major facilities in Xinjiang.
- Polysilicon prices rose sharply, with average domestic dense and recharge material prices reaching approximately RMB 40.5/kg on August 18, up 26.96% from July 31.
- Major producers increased supply discipline, with eight leading Chinese polysilicon companies pledging to avoid selling below full production costs.
- Solar cell prices also moved higher, as stronger upstream material prices began to affect the downstream photovoltaic supply chain.
- Demand remains cautious, suggesting that the recent recovery is currently driven more by supply adjustments and cost support than by a broad increase in consumption.
Outlook:
The silicon market may remain supported by tighter supply and production discipline in the near term. However, future price trends will depend on downstream demand from solar, aluminium alloys, silicones, and other industrial applications.
SOURCES:
[1] Shanghai Metals Market (SMM), August 20, 2026
Silicon Metal Prices Continue Strengthening amid Production Cut Expectations.
[2] Shanghai Metals Market (SMM), August 19, 2026
New Anti-Involution Drive Pushes Polysilicon Prices Up 26.96% in August.
[3] pv magazine, August 21, 2026
Chinese PV Industry Brief: Polysilicon Market Shows Tentative Recovery as Wafer Prices Surge.
[4] pv magazine / OPIS, August 21, 2026
China TOPCon Cell Prices Jump on Firmer Upstream Sentiment and Rising Export Demand.