Silicon Industry Branch: Polysilicon market sentiment is pessimistic, prices continue to decline.

On March 25th, according to Antaike statistics, the transaction price range of n-type polysilicon recycled materials this week was 39,000-42,500 yuan/ton, with an average transaction price of 40,500 yuan/ton, a 6.25% decrease compared to the previous period; the transaction price range of n-type granular silicon was 40,000-43,000 yuan/ton, with an average transaction price of 40,500 yuan/ton, a 7.95% decrease compared to the previous period. This week, the market was affected by pessimistic sentiment, and the price of polysilicon continued to decline. The transaction range for n-type recycled materials reached a low of 39,000 yuan/ton, and the transaction price for n-type granular silicon also decreased, with an average price drop of nearly 8%. The market trading atmosphere was light this week, with only one company securing new orders, while the majority of companies did not receive any new contracts. In addition, some companies faced pressure as contracts were cancelled and renegotiated at lower prices. The market price continued to decline mainly due to the relative pessimism of upstream and downstream companies regarding future prospects. Downstream companies had very low procurement intentions, and pressured for lower prices; silicon material companies, under inventory and financial pressures, passively accepted lower prices in order to seek cash flow, creating a negative cycle of "the more prices fall, the less people buy." In the current trend of falling prices, the greater the decline and speed of price reduction, the more obvious the downstream companies' mentality of "buying high and not buying low," further inhibiting purchasing intentions beyond essential needs and leading to a weaker market demand. The polysilicon industry is facing a severe test, and the market clearing process may be more complex than expected. In order for the market to stabilize in the future, not only does there need to be a reduction in inventory certainty, but also substantial recovery in end demand and gradual restoration of market confidence. The current significant and rapid decline in prices not only fails to stimulate demand, but also exacerbates the wait-and-see and risk-averse sentiment throughout the entire industry chain, prolonging the time for market bottoming out. Therefore, from the perspective of companies, it is necessary to reasonably arrange sales pace based on their own costs and cash flow situation. Irrational price reductions will only further erode the overall profit margins of the industry, hinder long-term healthy development; at the same time, companies should strengthen market information exchange, enhance consensus on supply and demand situations, stabilize market expectations, and reduce misjudgments and malicious price pressure caused by information asymmetry. Only through rational decisions made by both upstream and downstream companies can the industry emerge from the trough as soon as possible and achieve high-quality and sustainable development.