Daqo New Energy, the leading Chinese polysilicon supplier, has reported an uptick in its revenues for the 3rd quarter of 2025 attributing it to the recovery of market prices across the solar PV value chain.
CEO Xiang Xu believes that the industry is now gradually recovering from the cyclical downturn. “In particular, the polysilicon sector reached an inflection point during the quarter, with prices rebounding significantly,” he added.
During the reporting quarter, Daqo says polysilicon ASP rose to $5.80/kg compared to $4.19/kg in the previous quarter. It has also reported a quarter-on-quarter (QoQ) decrease of 12% in average total production cost to $6.38/kg from $7.26/kg as a result of its continued cost reduction efforts and production levels going up (see Daqo Records Quarterly Operating & Net Losses In Q2 2025).
With higher sales and ASPs, Daqo’s revenues for the reporting quarter improved to $244.6 million compared to $75.2 million in Q2 2025 and $198.5 million in Q3 2024 (see Daqo Sustains Net Loss In Q3 2024 Amid Challenging Market Conditions).
Its EBITDA turned positive with $45.8 million compared to an EBITDA loss of $34.3 million last year, while its net loss narrowed to $14.9 million vis-à-vis a net loss of $60.7 million in Q3 2024 and $76.5 million in Q2 2025.
It exceeded quarterly polysilicon production guidance of 27,000 MT to 30,000 MT with a total roll out of 30,650 MT as it maintained a nameplate capacity utilization rate of 40%. The industry-wide monthly polysilicon supply during the quarter ranged within 100,000 MT to 130,000 MT, shared Daqo.
“We also capitalized on favorable pricing conditions to sell not only our current quarter's output but also a significant portion of our existing inventory, leading to a sharp rise in our sales volume to 42,406 MT from 18,126 MT in the previous quarter,” added Xu. “As a result, our sales volume far exceeded production, bringing our inventory down to a healthy level.”
Analysts at ROTH believe after the over-shipments in Q3, it is now left with 10,000 MT inventory which is ‘close to its normalized inventory levels’.
Xu also referred to the Chinese government’s efforts to curb low-price competition in the polysilicon industry with better regulation and improved product quality and its impact on the industry. He especially sees major ramifications for the industry with regard to the energy consumption limit per unit of polysilicon production proposed by the Standardization Administration of China on September 16, 2025.
“Once implemented, polysilicon manufacturers with unit energy consumption higher than 6.4kgce/kg must implement corrective improvements within a specified period. Those failing to comply or meet the entry threshold (5.5kgce/kg) after rectification will be ordered to cease operations,” shared Xu. “We expect that the implementation of this new energy consumption standard will substantially ease the issue of industry overcapacity.”
For Q4 2025, Daqo projects between 39,500 MT and 42,500 MT of polysilicon production, and between 121,000 MT to 124,000 MT for full year.
