Silicon Industry Branch: Anticipate that the polysilicon industry will continue its downward adjustment trend

On March 11, the Non-Ferrous Metals Industry Association Silicon Branch released the weekly review of polysilicon. According to Antaike, the transaction price range for n-type polycrystalline silicon re-investment feedstock this week was 42,000-48,000 RMB/ton, with an average transaction price of 45,200 RMB/ton, down 6.42% week-on-week; the transaction price range for n-type granular silicon was 43,000-45,000 RMB/ton, with an average price of 44,000 RMB/ton.

The Silicon Branch analyzed that the main reasons for the continued downward shift in price focus this week are threefold: First, the launch of terminal installation projects has been slow, and the recovery in downstream cell and module production has been weak, leading to soft actual procurement demand for silicon materials and insufficient support for prices; second, the social inventory of polysilicon has already reached a historic high, and although silicon producers are eager to ship, downstream companies are cautious in purchasing due to sufficient stockpiles, resulting in a market trend of “lower prices for higher volume”; third, recently, some traders and futures traders have offered quotes 2-3 RMB/kg below the prices at which producers are shipping, further accelerating the decline in spot prices.

The Silicon Branch stated that currently, the pace of demand recovery is significantly slower than expected, and destocking of high inventories still requires time. Therefore, in the short term, the dual pressures of weak demand and high inventory will continue to dominate market trends. It is expected that until clear signals of terminal demand growth or inventory reduction appear, the polysilicon industry will continue its downward adjustment trend and gradually move into a phase of clearing excess capacity.