REC Silicon selling polysilicon below production cash cost as sales plummet almost 70%

Facebook
Twitter
LinkedIn
Reddit
Email
 Moses Lake FBR facility operating at only 25% utilisation rates. Image: REC Silicon

Polysilicon producer REC Silicon has been forced to sell solar grade (FBR) polysilicon below cash cost, due to weak demand and ASP declines, driven by demand curtailment in China and continued polysilicon capacity expansions. 

REC Silicon reported third quarter 2018 revenue of US$43.7 million, down from US$58.9 million in the previous quarter. 

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The company reported a negative EBITDA of US$6.1 million compared to a negative EBITDA of US$9.6 million in the previous quarter.  

Polysilicon sales volume for the quarter was 1,113 MT, a 46.4% decrease from the previous quarter, while inventory increased by 503MT. 

Solar grade FBR polysilicon revenue in the third quarter was only US$6.2 million, a 69.8% decrease from the previous quarter, due to sales volume declining 62.2%, quarter-on-quarter to only 658MT and average ASPs declining 20.5%.

The company made an EBITDA loss of US$9.9 million on FBR sales, due to selling below production cash costs of US$15.1/kg.

 In a recent investor note, ROTH Capital financial analyst, Philip Shen noted that he expected polysilicon production to increase around 32% in 2019 to 520,000 MT, while global demand was expected to increase by only 5-10% , indicating that the industry may be oversupplied by as muchas 120,000 MT. 

“If poly pricing remains low, it will be critical to follow how many polysilicon companies shut down as the new capacity coming online is generally lower cost and higher quality,” noted Shen in the investor report. “Additionally, with the aggressive ramp-up of China polysilicon capacity, China may soon be able to serve all of its polysilicon demand domestically.”

Solar grade FBR polysilicon revenue in the third quarter was only US$6.2 million, a 69.8% decrease from the previous quarter, due to sales volume declining 62.2%, quarter-on-quarter to only 658MT and average ASPs declining 20.5%. Image: REC Silicon
7 October 2025
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 7-8 October 2025 is our third PV CellTech conference dedicated to the U.S. manufacturing sector. The events in 2023 and 2024 were a sell out success and 2025 will once again gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing in the U.S. out to 2030 and beyond.
21 October 2025
New York, USA
Returning for its 12th edition, Solar and Storage Finance USA Summit remains the annual event where decision-makers at the forefront of solar and storage projects across the United States and capital converge. Featuring the most active solar and storage transactors, join us for a packed two-days of deal-making, learning and networking.
10 March 2026
Frankfurt, Germany
The conference will gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing out to 2030 and beyond.
16 June 2026
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 16-17 June 2026, will be our fifth PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2027 and beyond.

Read Next

September 5, 2025
Scientists from Germany and Saudi Arabia have discovered that perovskite thin-film cells are compatible with current industry standard silicon solar cells, which they claim is a “crucial step toward the industrialisation of perovskite silicon tandem solar cells”.
September 4, 2025
The Czech national cybersecurity agency has warned that Chinese solar inverters represent a threat to the country’s data security.
September 3, 2025
Huasun claims it has set new record efficiencies for HJT-perovskite tandem solar cells at both laboratory and commercial scales.
September 3, 2025
LONGi, Jinko Solar, Trina Solar and JA Solar posted combined net losses of nearly RMB11 billion (US$1.54 billion) in H1 2025.
September 2, 2025
The Fraunhofer Institute for Solar Energy Systems (ISE) will build a pilot solar cell line in Germany to support US manufacturer Talon PV’s efforts to establish solar cell capacity in the US.
August 29, 2025
Chinese module maker JA Solar has launched DesertBlue, a PV module designed for desert and semi-arid regions. 

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines