Daqo New Energy Exceeds Solar Panel Production Guidance in Third Quarter
Key Facts
Polysilicon is a raw material used in solar panel manufacturing, so production volume reflects the company’s level of activity in the supply chain. Production was higher than the 43,675 metric tons the company recorded in the second quarter and the 43,402 tons in the first quarter. However, exceeding operating guidance did not end the company’s financial pressures. The selling price remained below average total production cost, while the company said it was considering aligning future production with demand.
On sales, Chief Executive Xiang Xu said Daqo resumed selling in June 2026 after a period without clear policy developments. Sales volume rose to 15,190 metric tons in the second quarter, from 4,482 tons in the first quarter, according to the company’s disclosure. But the average selling price fell to $4.04 per kilogram. The figures show that higher sales volumes were accompanied by a price decline, limiting the effect of improved sales on results.
The polysilicon market faced weak demand and inventory accumulation in the first half of the year, according to the company. The price of N-type polysilicon fell to a range of 31–34 yuan per kilogram at the end of the second quarter, from 35–37 yuan at the end of the first quarter. Amid low prices and rising inventories, producers in the sector operated at low rates. Total polysilicon production was 538,000 metric tons in the first half, down 9.8% year over year. These conditions put Daqo’s third-quarter production increase in a market still facing price pressure and inventory clearance challenges.
Looking ahead to the fourth quarter, Daqo said it was considering lowering its operating rate to align production with demand and support inventory clearance. This follows third-quarter production exceeding the guidance range, while the selling price remained below total cost. The available material did not provide a figure for fourth-quarter production guidance, but said the company was considering cautious supply management. The annual production range the company had previously set for 2026 was also 160,000 to 180,000 metric tons, including the impact of annual maintenance. The company’s shares closed at $10.11 on October 26, 2026.
Polysilicon plants in China face a new regulatory deadline as mandatory national standards for energy consumption and product efficiency in the solar energy supply chain take effect on January 1, 2027. Daqo said facilities whose specified consumption exceeds 6.3 kilograms of coal equivalent per kilogram of output are required to make improvements before that date. The disclosure places this requirement among the sector’s upcoming changes, alongside weak demand and inventories that weighed on the market in the first half. The standards are scheduled to take effect after the end of 2026.