Silicon industry branch: some silicon companies announced maintenance and production cuts. This week, polysilicon prices have risen slightly.

On December 25th, the Silicon Industry Branch issued a document stating that the transaction price of polycrystalline silicon had slightly increased this week, with some leading polycrystalline silicon companies announcing maintenance and production reduction notices, officially entering a low-load operation phase. Due to the inability to reverse the supply and demand relationship of polycrystalline silicon in the short term, there have been no significant changes in prices for large direct procurement orders downstream. Currently, new contracts mainly consist of small orders or trader orders, with some of these orders showing a certain degree of price increase. This is mainly due to the positive impact of the listing of polycrystalline silicon futures and the reduction in operation load of all production enterprises. Both upstream and downstream companies are optimistic about the future trends of silicon material prices, hence a consensus has been quickly reached on transaction volume and price, leading to a slight upward trend in polycrystalline silicon prices in the short term. In terms of prices, the transaction price range of n-type recovered materials is 38,000-44,000 yuan per ton, with an average transaction price of 40,600 yuan per ton, a 0.74% increase from the previous period; the transaction price range of n-type granular silicon is 37,000-38,500 yuan per ton, with an average transaction price of 38,000 yuan per ton, a 2.70% increase from the previous period. The transaction price range of p-type silicon material is 32,000-35,000 yuan per ton, with an average transaction price of 33,100 yuan per ton, remaining flat compared to the previous period. In the past week, the transaction volume of polycrystalline silicon companies has been low, with most companies currently in the stage of fulfilling previous orders and signing new orders for the next round. Statistics show that this week, there were 6 companies trading n-type silicon materials, with a general upward trend in transaction prices and adjustments in new order prices. As the stockpiling by direct downstream customers before the holiday season has basically ended in early December, there is a trend of transferring polycrystalline silicon inventory from upstream manufacturers to downstream consumer companies. The prices of these orders mainly focus on 40,000 yuan per ton or below. Yesterday (December 24, 2024), both Tongwei Co., Ltd. and Xinjiang Daqo New Energy announced maintenance and production reduction notices. According to research, Tongwei's maintenance plan had been gradually progressing since November, with noticeable impacts in December. Xinjiang Daqo New Energy also anticipated maintenance in the fourth quarter in their third-quarter report. This announcement provides a more specific signal to the public, indicating orderly production reduction and control by Tongwei Co., Ltd., and reduction in sales of mainline products by Xinjiang Daqo New Energy, both of which are positive for alleviating industry supply and demand pressures and guiding market prices back to rationality. With the imminent launch of polycrystalline silicon futures, the factors influencing polycrystalline silicon prices will become more diverse, and forward price discovery will bring more possibilities to the polycrystalline silicon market.