Polysilicon Weekly Review - Transactions gradually become active and price decline narrows (1.11)

On January 11, the Silicon Industry Branch released a weekly polysilicon review, the details are as follows:

This week, the price range of domestic single crystal re-feeding is 125,000-180,000 yuan/ton, and the average transaction price is 161,600 yuan/ton, a week-on-week decrease of 9.32%; the price range of single crystal dense material is 123,000-178,000 yuan/ton, The average transaction price was 159,200 yuan/ton, a week-on-week decrease of 9.65%.

The domestic polysilicon price continued its downward trend this week, but the decline in transaction prices narrowed. Among them, the mainstream transaction price of single crystal re-feeding dropped from 170,000-180,000 yuan/ton last week to 150,000-160,000 yuan/ton this week, with a weekly average price drop of 9.32%, which was significantly narrowed from the previous month. Since late November, the number of silicon materials signing companies has only been 2-4 per week. The actual transaction situation has improved this week, and companies have started the signing process one after another. The number of companies with new orders this week has increased to more than 7.

The transaction of silicon materials is gradually active and the price decline is obviously narrowed. There are two main reasons: first, before the price of silicon wafers stops falling, because of concerns about the loss of price drops, the willingness of silicon wafer enterprises to purchase and the willingness of silicon materials enterprises to negotiate are extremely low , but the price of silicon wafers began to stabilize this week, and part of the purchase demand can be implemented. When the operating rate and inventory dropped to abnormal levels, the price bottomed out and stabilized, and profits recovered slightly. Some silicon wafer companies began to increase the operating rate, and the demand for silicon materials recovered. However, the relationship between supply and demand in the market has not been reversed. , so the price of silicon materials is still in the downward stage this week, and the decline shows a narrowing trend. As of this week, among the 15 companies in production, there is still a silicon material company whose maintenance has not yet been completed.

According to the production scheduling plans of various enterprises, it is expected that domestic polysilicon production in January will increase slightly by about 5% from the previous month. According to different adjustments, the output of silicon wafers in January will increase by more than 10% month-on-month, that is, the increase in supply of silicon materials in January is not as good as the increase in demand. From the perspective of total supply and demand, since polysilicon companies basically maintain full production and some new companies still release a small increase, while the operating rate of silicon wafer companies has not yet returned to normal operation, the relationship between polysilicon supply and demand has not yet been reversed. , but as the price of silicon wafers gradually stabilized, the price of silicon materials dropped slightly during the same period, and the profit margin continued to support the increase in the operating rate of silicon wafer companies, and began to build safety stocks. After the decline gradually slows down, the trend will gradually bottom out and stabilize. (Liu Jing)


Source: Silicon Industry Branch