Chinese polysilicon producer GCL Technology has reported net losses of RMB 2.9 billion (approximately US$406 million) for the first nine months of 2024. The company attributed these losses to a significant decline in the average selling prices (ASP) of polysilicon and silicon wafer products compared to the same period in 2023.
During this timeframe, GCL's solar material business incurred losses of RMB 1.8 billion (around US$252 million). The company produced 198,300 tonnes of granular silicon and shipped 207,300 tonnes in the first three quarters. Notably, shipments in Q3 rose sharply to 80,900 tonnes, up from 60,120 tonnes in Q2.
Despite the increase in shipments, the company has faced challenges with negative margins. A September analysis from polysilicon market expert Bernreuter Research indicated that all major Chinese producers—including Tongwei Solar, GCL, Daqo New Energy, and Xinte Energy—reported losses in the first half of 2024.
Polysilicon prices have experienced a dramatic decline, falling from around RMB 230/kg at the beginning of 2023 to approximately RMB 40/kg last week. In its results announcement, GCL projected that in the second half of 2024, polysilicon prices could fall below the production cash cost across the industry. Reports from August highlighted that Daqo New Energy had already been selling below production cost in Q2.
GCL noted that the industry is operating at low levels, maintaining a balance between supply and demand.
