Solar Firms Cut Output Amid Price Wars：Two leading photovoltaic companies, Tongwei Co Ltd and Daqo Energy, have pledged to reduce production volumes due to intense price competition stemming from supply-demand imbalances and excess outdated capacity in the industry. Experts view output management and technological innovation as crucial for companies to gain a competitive edge amidst such competition. They also predict the introduction of additional financial instruments to alleviate the financial burden on companies from their innovation investments. This follows the Central Economic Work Conference's first-time prioritization of addressing hyper-competition in the upcoming year. Tongwei will gradually cut production at four high-purity crystalline silicon production lines to reduce operational losses and improve profitability. Daqo Energy will control production reductions on polysilicon lines in Xinjiang and Inner Mongolia. Experts highlight that macroeconomic fluctuations, insufficient domestic demand, and escalating trade tensions have increased inventory pressures on companies, leading to irrational pricing strategies to secure market share. The China Photovoltaic Industry Association reports that while production volumes of key components have grown over 20% year-on-year, prices have plummeted. However, since mid-October, procurement prices for PV components have stabilized, indicating a recent trend of industry-wide price stability.

By LIU YUKUN | China Daily