Polysilicon price floor pledge vs widening losses and US tariff risk
Eight polysilicon makers pledge no below-cost sales Eight firms controlling over 90% of China's polysilicon capacity, including Daqo, signed a pledge to stop selling below cost. This could lift prices and help Daqo's thin margins, but enforcement is uncertain and downstream buyers still resist higher prices.
This is the main positive force behind the stock, directly aimed at supporting polysilicon prices.
H1 2026 net loss of 1.595 billion yuan, Q2 loss widened Daqo reported a first-half net loss of 1.595 billion yuan, with revenue down 57.63% and the second-quarter loss widening from the first. This shows the company is still burning cash and under heavy financial pressure.
It is the clearest evidence of how badly the downturn is hurting Daqo's finances.
Daqo raises output guidance and pivots to AI data centers Daqo raised its 2026 production target to 160,000–180,000 tons and plans to enter AI data center power gear by late 2026. Sales volume jumped in Q2, but average selling prices fell, so the pivot is a long-term bet, not an immediate fix.
It shows management's response to weak prices and a potential new growth area, but near-term pricing still hurts.
US polysilicon price floor and tariffs threaten exports The US is preparing a price floor and tariffs on polysilicon to protect domestic producers, with Daqo cited as affected. This could limit its access to the US market and add another headwind on top of weak global prices.
It is a new external risk that could reduce Daqo's sales and pressure the stock.