Market Overview: The domestic DMC market prices have stabilized, with an average price of 12250 yuan/ton, unchanged from the previous day. Currently, most individual enterprises in China maintain a closed status, mainly to complete the backlog of orders in the early stage. The main manufacturers in Shandong have reached transactions through bidding, but the market feedback on the acceptance of orders is not ideal. Affected by a decrease in pre-sale orders and the impact of low-priced Dow D4 products, some companies in the south have resumed limited order operations today, while downstream customers choose to make moderate purchases when prices are low. Raw material side: The price of the main raw material metal silicon has slightly decreased. On the supply side, the workload of individual units has increased, and some enterprises are more willing to accept orders. Demand side: Downstream purchases in moderation at low prices.
On July 29th, there were two pieces of news in the polycrystalline silicon industry that touched the nerves of the market. The online industry is expected to undergo large-scale consolidation, involving changes in production capacity of multiple enterprises; Another clarification statement from the official agency emphasizes that the relevant information does not match the actual situation.
Online rumors have sparked heated discussions. On July 29th, 17 polysilicon companies held a meeting in Beijing and basically finalized an integration plan. The plan proposes the establishment of a joint venture by 11 companies to acquire the production capacity of another 7 companies through debt financing, involving a total production capacity of up to 700000 tons. These 11 companies include 6 leading enterprises such as Tongwei, Xiexin, and Daquan, as well as 5 enterprises such as Nanbo and Lihao; Among the list of companies that have basically decided to withdraw, Baofeng, Runyang, Xinjiang Jingnuo, and others are prominently listed. Regarding the pricing of the acquired production capacity, it is reported that it will be based on carrying bank liabilities and then discounted on net assets. In fact, as early as mid May this year, there were rumors that six leading polysilicon companies were planning to establish merger and acquisition funds to integrate other production capacities, which caused quite a stir in the industry at that time.
According to Energy No.1 News, after verifying with relevant senior executives of some polycrystalline silicon enterprises, the response is as follows: the incident did occur, and the possibility of future polycrystalline silicon storage and integration is high. However, the participating parties have not truly reached a consensus, and some details are still to be discussed.
Amid widespread discussions sparked by online rumors, the China Photovoltaic Industry Association (CPIA) issued a clarification statement on the same day. The statement pointed out that the news released by some self media about the anti involution and polycrystalline silicon work in the photovoltaic industry is seriously inconsistent with the actual situation, and called on everyone not to believe or spread rumors. At the same time, it is emphasized that we will adhere to the principles of rule of law and marketization to promote the anti internal competition work, and strive to get rid of the vicious competition of internal competition as soon as possible. We ask everyone to follow the official release of information as the standard.