Yamato: Prices of upstream commodities futures will have a short-term upward trend.

Daiwa Research reports that prices of various commodity futures have generally risen, including coking coal, industrial silicon, lithium, and polysilicon. Considering the expected supply control policies and the increase in demand for infrastructure due to the start of construction of downstream hydropower projects on the Yarlung Tsangpo River in Tibet, it is believed that prices of upstream bulk commodity futures will trend upwards in the short term, thereby supporting the stock prices of polysilicon and lithium companies. The bank predicts that the price of thermal coal will rebound by up to 10% in the short term and rates China Shenhua as "hold." However, due to the potential decline in global demand for solar power next year, the bank believes that the average price of polysilicon will not sustain its rebound. Regarding lithium, the bank believes that without strong growth in demand for electric vehicles and energy storage systems in the EU or the US, it will be difficult for lithium prices to rise in the next two years.