Silicon Industry Sub-Association: Maintenance and repair production fell below expectations, large polysilicon factories raised prices and traded in bulk this week.

On September 18, the silicon industry branch released a weekly review of polycrystalline silicon. As of now, there are 14 companies in maintenance or load reduction, with one company expected to add capacity in the coming month. The rest of the companies in the capacity recovery phase are progressing slower than expected. Additionally, with the upcoming National Day holiday and the approaching dry season, some regions are expecting production stoppages in polycrystalline silicon, leading to a new round of supply reduction in the fourth quarter. However, considering the high inventory of polycrystalline silicon in the industry, around 300,000 tons, the short-term price increase potential is relatively limited. The price of silicon is expected to stabilize and rise more substantially when the output declines again during the dry season. This week, the price of polycrystalline silicon has slightly increased. The transaction price range for n-type rod silicon is maintained at 39,000-44,000 RMB/ton, with an average transaction price of 41,700 RMB/ton, a 0.24% increase from last week. The transaction price range for monocrystalline dense material is maintained at 33,000-36,000 RMB/ton, unchanged from last week. The transaction price range for N-type granular silicon is maintained at 36,500-37,500 RMB/ton, with an average transaction price of 37,300 RMB/ton. This week, polycrystalline silicon companies are still signing new orders, with some companies already meeting their monthly targets. There is currently some divergence in the new contract prices, with downstream gradually accepting price increases from some leading companies, while the rest of the companies' contract prices remain stable. The recent increase in silicon prices is mainly supported by two factors: on one hand, leading companies have a strong willingness to raise prices during this round of contracts, while the rest of the companies are weak in signing contracts, leading to several large contracts being settled at higher prices. On the other hand, after the price of silicon bottomed out and rebounded, both upstream and downstream have reached a consensus on the price bottom. There is no expectation of a price decline for silicon in the short term, suggesting the potential for downstream companies to rebuild their inventory. Overall, the recent slight increase in silicon transaction prices provides strong support for the rise in silicon wafer prices.