In the new week, individual factory prices have diverged and fluctuated. Can market prices return to the profit margin? Specifically, some individual factories in Shandong are still closed, but due to the impact of their equipment maintenance, online transaction prices have increased. Middle and downstream enterprises have been affected by this, and the situation of low-priced stocking has significantly increased. However, the operating rates of other individual enterprises have not decreased, and the oversupply cannot be effectively alleviated. The confidence in the short-term rebound is still insufficient, but it may be difficult to achieve 9.9 free shipping before the end of the month. Looking at this week, the news of production cuts from individual factories in Shandong has helped the market stop falling. Currently, DMC prices remain stable at 10300-11000 yuan/ton, and individual companies are still expected to hold onto the bottom line of 10000 yuan. The negotiation space for new orders in the past two days has gradually narrowed, and the bidding atmosphere has slightly eased. If orders are followed up in the future, the market may stabilize and slightly increase, basically between 100-200 yuan.
On the cost side: Recently, large factories in the eastern production areas of Xinjiang have started to resume production, and after Yunnan region enters the wet season in July, its output may further increase, posing a greater risk of oversupply in the market in the future. On the demand side, polysilicon production is currently resuming seasonally, but there is little room for increased production in a sluggish market. Organic silicon monomer factories may reduce production in the short term to maintain prices, and demand is not very stable. Overall, the main trend of industrial silicon is bearish and unchanged, but futures prices are at historical lows with limited price changes. In terms of spot prices, after a brief stabilization, prices have loosened and weakened again. As of June 23, the closing price of futures Si2509 contract is 7420 yuan/ton, and the price of 421 # metal silicon is 8500-9900 yuan/ton. It is expected that spot prices will continue to fluctuate under pressure in the future. In terms of operating rate: Recently, several major factories have maintained a relatively high level of operating capacity, with an overall production capacity of around 70%. Currently, there are reports of major new facilities in Shandong shutting down for maintenance, and some individual factories with high inventory may also enter a production reduction and price protection mode. The market's willingness to stabilize prices is gradually increasing。