China's most active polysilicon futures up over 4%

China's most active polysilicon futures up over 4%

China's most active polysilicon futures have surged by over 4% in response to recent developments in the industry. This uptick comes as GCL Technology Holdings Ltd (3800.HK), one of the leading producers, signals that more information on a planned restructuring of China's polysilicon industry will be forthcoming soon [1].

In a call with investors on Sunday, GCL's Chief Financial Officer Yang Wenzhong indicated that clearer details about the reform plan would be released soon. The restructuring proposal, which involves GCL and other top producers buying up and shutting down about one-third of the industry's capacity, aims to increase prices and potentially pass these higher costs to the downstream solar panel industry [1]. Analysts have noted that the source of financing for this restructuring remains uncertain, with banks being a likely candidate [1].

GCL Technology expects to make a profit in August and September, driven in part by the rise in polysilicon spot prices. This increase is attributed to Chinese regulators signaling a crackdown on companies selling at overly low prices [1]. Despite this positive outlook, GCL reported significant losses for the first half of 2025, with losses widening to 1.78 billion yuan ($249.6 million) [1].

In a separate development, Russian President Vladimir Putin has underscored the competitive advantages that China will gain from the planned 'Power of Siberia-2' gas pipeline. The pipeline, which will supply Russian natural gas to China, will operate on a market-based pricing formula [2]. This agreement is part of a broader effort by Russia to ensure stable and reliable energy supplies to China, despite growing global energy demand [2].

These developments highlight the dynamic nature of the polysilicon and energy markets, with investors closely watching for further details on industry restructuring and the impact of new energy supply agreements.

References:
[1] https://www.reuters.com/sustainability/boards-policy-regulation/chinas-gcl-expects-more-information-soon-polysilicon-restructuring-2025-09-01/
[2] https://fakti.bg/en/world/997906-china-to-receive-russian-gas-under-power-of-siberia-2-at-market-price-putin-says-in-beijing