Silicon Industry Branch: Polysilicon supply contraction this week continues to improve the relationship between supply and demand

The Zhitong Finance App learned that on November 4, the Silicon Industry Branch released the Polysilicon Weekly Review. According to Antec statistics, the transaction price of n-type composite feed (rod-shaped silicon) this week was 43,000 yuan/ton, which was the same; the transaction price range for n-type granular silicon was 4.00-410,000 yuan/ton, and the average transaction price was 40,300 yuan/ton, which remained flat from month to month.

Spot transactions in the domestic polysilicon market remained light this week, and the number of companies that signed new orders remained at 2-3. The actual number of re-entry orders was relatively small, and only a few companies reached a small number of transactions. The granular silicon sector maintains a steady pace of shipment, and the overall price is stable. Polysilicon manufacturers continue to insist on selling at no less than full cost, and overall market prices remain stable. Downstream customers mainly consume inventory, and procurement maintains a wait-and-see pace. The futures market fluctuated due to the cancellation of warehouse receipts in November, but this is a technical change in the delivery process.

According to statistics from the Silicon Industry Branch, domestic polysilicon production in October was 109,500 tons, and during the same period, silicon wafer production was 55.17 GW, corresponding to 93,800 tons of silicon demand. In that month, 14,000 tons of inventory (including import and export) were added. By the end of October, the polysilicon industry had inventories of about 587,000 tons. Domestic polysilicon production is expected to drop to about 84,000 tons in November, and the corresponding monthly demand for silicon materials is about 90,000 tons, down from October. It is expected that the relationship between supply and demand for polysilicon will ease.

Overall, the rate of inventory accumulation has clearly slowed in October, and the relationship between supply and demand will improve from easing to balance. In the later stages, we need to pay attention to the continuity of production cuts and implementation by various enterprises, the intensity of implementation of energy consumption limit standards, and the starting pace of downstream inventory replenishment requirements.