Chinese solar-grade polysilicon manufacturer Daqo New Energy Corp recorded a third-quarter attributable net loss of $6.3 million (EUR 6 million) as a result of a decline in the average selling price (ASP) of polysilicon, impacting the company's top-line performance.
Daqo New Energy's Chairman and CEO, Xiang Xu, explained that polysilicon prices had reached their lowest point at the close of the second quarter, contributing significantly to reducing industry inventory levels. Subsequently, prices began a gradual rebound.
In the third quarter, Daqo New Energy produced 57,664 tonnes of polysilicon, representing a 27% increase compared to the preceding trimester. The company achieved a 5.8% reduction in production costs, driven by the full production capacity of its Phase 5A polysilicon project in Inner Mongolia. The improved production process and the lower cost of metallurgical-grade silicon played a crucial role in this cost reduction, with expectations for further cost decreases, according to the company.
Polysilicon shipments in the same period climbed to 62,967 tonnes, contributing to the reduction of inventory levels. However, in alignment with the decline in selling prices, revenues contracted by 60.2% in annual terms, reaching $484.8 million.
As of the end of September, Daqo New Energy possessed an annual polysilicon nameplate capacity of 205,000 tonnes.
Looking ahead, the company anticipates an increase in total polysilicon production volumes during the fourth quarter, within the range of 59,000 tonnes to 62,000 tonnes. The full-year production is expected to reach 196,000 tonnes to 199,000 tonnes, reflecting a year-on-year increase of 46% to 49%.