- Global polysilicon prices remained under pressure in Q2’26 as excess solar-grade supply and weak downstream margins limited price recovery.
- Feedstock conditions remained favourable as lower silicon metal costs and competitive electricity advantages kept production costs contained.
- Downstream demand from solar wafer manufacturers remained cautious due to weak module margins and high inventories across the PV chain.
Asia
Polysilicon prices in China declined to ~RMB 36.87/kg in April and ~RMB 35.61/kg in May, showing a ~3.4% decrease. The market remained pressured by excess production capacity, high inventories and intense competition among producers. China continued to dominate global polysilicon supply, with a large production base exceeding domestic demand. Wafer manufacturers maintained cautious purchasing strategies as wafer and module prices remained weak, reducing the need for aggressive raw material procurement. Producers with higher operating costs faced margin pressure, leading to industry efforts to reduce inefficient capacity. Toward the end of Q2, supply discipline and production adjustments helped slow the pace of decline, but pricing remained under pressure due to the imbalance between supply and demand.
Europe
Polysilicon prices in Germany declined to ~EUR 4.71/kg in April and ~EUR 4.59/kg in the following month, showing a ~2.5% decrease. European prices remained relatively higher than China due to import dependency, limited domestic production and demand for traceable, lower-carbon material. Solar manufacturing expansion continued supporting long-term demand, but higher energy costs and stricter sustainability requirements increased production expenses. Buyers focused on supply security and compliance rather than only low-cost material, creating a premium market segment. However, global oversupply and weaker solar component margins limited price growth.
North America
Polysilicon prices in the United States declined to ~USD 5,486.88/MT in April and ~USD 5,382.19/MT in the subsequent month, showing a ~1.9% decrease. The market remained supported by limited domestic supply and policy-driven solar manufacturing investment. Local producers competed through supply reliability, traceability and compliance advantages rather than lower costs. However, global oversupply and weaker module economics continued influencing prices. Solar demand remained supportive, but cautious wafer purchasing and pressure across the photovoltaic supply chain limited stronger market momentum.
Analyst Insight
According to Procurement Resource, polysilicon prices are expected to remain under pressure as supply rationalisation progresses, while recovery will depend on production cuts, inventory reduction and improvement in wafer demand.