Polysilicon prices headed lower on Wednesday, reversing the uptrend, as Chinese suppliers continued to have plentiful supplies and sales pressure amid rising output and inventories. In specific, mono-grade polysilicon prices fell this week after China manufacturing data revealed a rise in domestic polysilicon production, intensifying concerns over a glut as the rising production and inventory forced Chinese suppliers to cut their high price quotes.

Polysilicon prices headed lower on Wednesday, reversing the uptrend, as Chinese suppliers continued to have plentiful supplies and sales pressure amid rising output and inventories. In specific, mono-grade polysilicon prices fell this week after China manufacturing data revealed a rise in domestic polysilicon production, intensifying concerns over a glut as the rising production and inventory forced Chinese suppliers to cut their high price quotes. Despite the resurgence of procurement activities, some top-tier Chinese suppliers would like to maximize their shipment and slow their rising inventory by the huge dealing volumes with price incentives amid the current substantial gross margins instead of raising prices further, resulting in the other suppliers following to slash their high price quotes.

The sturdy cell production kept mono-crystalline wafer prices unchanged this week, but the growing wafer production utilization rates weigh on the market sentiment. A separate survey showed wafer consumer confidence worsened this week, falling to a three-week low, as wider module production curbs in response to rising prices of silicon materials weighed on downstream makers' willingness to spend. Solar wafer makers closely parsed details on supply growth, polysilicon prices, and downstream production for late February, when the overpricing wafers cast new uncertainty over the demand outlook.

Excess supply from Chinese suppliers exacerbated by weakened demand growth affected mono-crystalline PERC cells prices significantly, as the ongoing production expansion from Chinese suppliers boosted concern of worsening oversupply but second-tier solar module makers were not able to make any profit under the current cell prices, leading solar cell order cuts. Additionally, the sentiment for Chinese mono-crystalline PERC cell manufacturers was bleak, as collapsing domestic demand, ongoing supply rallies, and market uncertainty posed significant market challenges. Mono-crystalline PERC cell prices dropped on Wednesday, defying hefty wafers as the surges in mono-crystalline PERC cell prices last week forced the non-integrated module makers to widen production restrictions, which are now threatening to derail a fragile demand recovery.

Mono-crystalline PERC module prices stayed unchanged on Wednesday after an upsurge in silicon materials in the past weeks restricted the abilities of Chinese suppliers to raise price stimulus to boost the demand growth. Solar module manufacturing growth remained modest in the current month, with some analysts forecasting a possible contraction as the market struggled with a raw material cost resurgence, which had burdened non-integrated module makers and showed no signs of abating.