Jan. 8 at 8:24 PM
$DQ Polysilicon futures in China plunged by their 9% daily limit after reports surfaced that the country's top market regulator has warned major producers of potential monopoly risks. A widely circulated memo indicated that on Jan. 6, the State Administration for Market Regulation met with the photovoltaic industry association and key players including to discuss "monopoly risks" and demand rectification.
While industry sources did not deny the authenticity of the memo when contacted by reporters, one company representative stated that firms will strictly follow regulatory requirements to address the "anti-involution" in the sector and that any official information will be disclosed according to law.
An industry insider attributed the futures plunge to the memo's contents, predicting that the government's push against intense competition will succeed.The source expects polysilicon pricing could return to a marginal cost model, forcing a market-driven consolidation.
