Silicon Industry Branch: This week's polysilicon transactions are still light and wait-and-see sentiment still exists

The Zhitong Finance App learned that on September 2, the Silicon Industry Branch released the Polysilicon Weekly Review. This week, the domestic polysilicon market continued its wait-and-see trend. Manufacturers are still willing to keep the price. Mainstream companies still use full cost as the bottom line, and no active price reduction disruptions have occurred; however, downstream demand is not being followed up, new orders have been signed, and the overall market is still in a transition phase where wait-and-see and experimentation go hand in hand. The game between supply and demand intensified, and the pace of transactions was slow.

The reference price range for polysilicon transactions this week is 40-43 yuan/kg, and the actual market turnover is limited. Long orders signed earlier have basically been implemented, and follow-up on new contracts has been slow. Some transactions have been completed using models such as distribution OEM and futures warehouse receipts. Market-based circulation is low, and the overall price is out of the market.

As of this week, the number of domestic polysilicon production remained at 9. According to statistics from the Silicon Industry Branch, domestic polysilicon production in August was about 118,900 tons, an increase of 13.1% over the previous month, with a net monthly output increase of 13,800 tons. The increase was mainly due to seven companies' resumption of production climbing or normal fluctuations, with a total increase of 17,400 tons; the decrease was reflected in maintenance and production cuts or reduced volatility by the other 2 companies, which decreased by a total of 3,600 tons. According to the company's production schedule, 5 companies will resume production and be released incrementally in September, and 3 others plan to cut production and operation. The overall forecast is that domestic polysilicon production will increase to about 124,000 tons in September, an increase of about 4.4% over the previous month.

Overall, the pattern of market easing continues. Inventory pressure continues to accumulate due to a recovery in supply-side production and weak downstream demand, and it will take some time to rebuild the price system. In the later stages, we need to pay attention to whether corporate production cuts are implemented, the pace of recovery during the peak season for terminal demand, and the guiding effect of progress in inventory removal on market pricing.