GCL Tech Shares Surge Over 4% in Afternoon Trade on Polysilicon Inventory Drawdown

Stock News14:50

GCL TECH (03800) climbed more than 4% in the afternoon session, with the stock last trading up 3.50% at HK$0.74, on turnover of HK$135 million.

Market data shows that polysilicon sector inventories reached RMB 22.6 billion at the end of the second quarter of 2026, down 13.0% quarter-on-quarter from RMB 26 billion in the first quarter of 2026.

According to East Money Securities, the anti-involution push has driven a temporary price rebound, but polysilicon prices have since re-hit bottom levels due to antitrust constraints and supply-demand oversupply; however, the 13% quarterly inventory decline signals that destocking is beginning to show results.

Huatai Securities noted that energy consumption restrictions and industry self-discipline are expected to drive a supply-demand rebalancing, forecasting effective industry capacity to drop to 1.7 million tonnes by 2027, below the market equilibrium range of 1.8-2.0 million tonnes. Polysilicon prices have also shown signs of recovery, with Infolink data indicating that the average granular silicon price stood at RMB 40/kg on August 26, up 29% from end-July levels, which should support margin improvement for the company's photovoltaic materials business.

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