Daqo New Energy's ASP Drops to $5.25/kg; Q4 Cash Costs at $4.46/kg
DAQO New Energy’s polysilicon average selling price fell to $5.25/kg in 2025 from $5.66/kg in 2024 while Q4 cash costs hit a record low of $4.46/kg on efficiency gains. Q4 production reached 42,181 tonnes at 55% utilization and full-year sales of 126,707 tonnes reduced inventory and supported $56.1 million in operating cash flow.
1. ASP Declines and Pricing Framework
In 2025, average selling prices for polysilicon fell to $5.25/kg from $5.66/kg in 2024. Management expects a pricing floor of about RMB 53–54/kg under new industry guidelines to prevent prices falling below cost, with consolidation pace influencing future pricing.
2. Cost Improvements and Record Low Cash Costs
In Q4, total production costs fell 9% sequentially to $5.83/kg from $6.38/kg in Q3, driven by process improvements, manufacturing efficiency gains and material optimization. Cash costs reached a record low of $4.46/kg, while idle facility costs declined to $0.74/kg on higher throughput.
3. Production Volumes and Utilization
Polysilicon output in Q4 was 42,181 metric tons, within guidance, with sales of 38,167 metric tons. Full-year production totaled 123,652 tons against guidance, and sales of 126,707 tons reduced year-end inventory as utilization rose to 55% in Q4.
4. Full-Year Financial Performance and Liquidity
Operating cash flow turned positive at $56.1 million in 2025, narrowing net loss to $170.5 million from $345 million in 2024. The company ended the year with $2.27 billion in liquid assets and forecasted 2026 polysilicon production of 140,000–170,000 metric tons.