Price first, game later! The price of organic silicon continues to fluctuate at the bottom. From the on-site situation, it can be seen that there has been no significant improvement in terminal demand recently. Therefore, for some individual factories' exploratory price increases, the response of middle and downstream enterprises is lukewarm, and their acceptance of high priced goods is relatively low. In addition, at the beginning of the month, downstream enterprises have already purchased a batch of low-priced goods. In the current stage of slight price fluctuations, it is difficult to have a large-scale stockpiling layout. The overall focus is still on the demand side. If upstream enterprises return to the strategy of exchanging price for quantity in the future, it may trigger a new round of low-priced replenishment. In this bearish environment, DMC prices are facing significant upward pressure, and there is still a hidden game of concession. However, the selling prices of most individual factories are already below the cost line, and the willingness to stabilize prices still prevails. Currently, the DMC quotation remains at 10700-11200 yuan/ton. Overall, there is no sign of improvement in the traditional peak season. Under the influence of bearish sentiment, the middle and lower reaches have regained the upper hand after a brief period of low-priced inventory replenishment. Behind the current stability, there is a hidden bidding storm. However, individual factories are striving to maintain stable operation with the support of pre-sale orders, and it is expected that DMC will remain stable with small movements this week.
On the cost side, construction in the southwest is stable, but due to the approaching dry season, the pace of resuming production is slow, while the number of furnaces in the northwest region continues to increase, and overall production capacity is expected to grow. On the demand side, the polycrystalline silicon market is driven by the strengthening of the anti involution trend. However, under the background of weak demand, inventory continues to accumulate, which limits the stock of industrial silicon; In terms of organic silicon, the improvement in downstream demand is limited, and the overall market performance is weak, providing moderate support for industrial silicon. In the short term, the construction in Northwest China continues to increase, and supply pressure may gradually emerge, while demand continues to weaken, and the overall fundamentals remain weak. However, the expectation of "anti involution" policies is frequently disturbed, and there are slight fluctuations and adjustments in market prices. Yesterday, the closing price of the main futures contract Si2511 was 8530 yuan/ton, down 185 yuan. The spot price of 421 # silicon metal remained stable at 9600-10100 yuan/ton, and it is expected that the industrial silicon market will continue to operate with slight consolidation in the future. In terms of operating rate, the current situation of individual factories receiving orders varies, leading to adjustments and differentiation in the operating pattern. Among them, the operating level of individual factories in the northwest, southwest, and north China regions has been maintained at around 70% or above for a long time. In addition, with the progress of time, some maintenance equipment is gradually restored, and the expected increase in supply and inventory in the future. It is expected that under the risk of accumulated inventory, some individual factories may re-enter the ranks of load reduction.
On the cost side, construction in the southwest is stable, but due to the approaching dry season, the pace of resuming production is slow, while the number of furnaces in the northwest region continues to increase, and overall production capacity is expected to grow. On the demand side, the polycrystalline silicon market is driven by the strengthening of the anti involution trend. However, under the background of weak demand, inventory continues to accumulate, which limits the stock of industrial silicon; In terms of organic silicon, the improvement in downstream demand is limited, and the overall market performance is weak, providing moderate support for industrial silicon. In the short term, the construction in Northwest China continues to increase, and supply pressure may gradually emerge, while demand continues to weaken, and the overall fundamentals remain weak. However, the expectation of "anti involution" policies is frequently disturbed, and there are slight fluctuations and adjustments in market prices. Yesterday, the closing price of the main futures contract Si2511 was 8530 yuan/ton, down 185 yuan. The spot price of 421 # silicon metal remained stable at 9600-10100 yuan/ton, and it is expected that the industrial silicon market will continue to operate with slight consolidation in the future. In terms of operating rate, the current situation of individual factories receiving orders varies, leading to adjustments and differentiation in the operating pattern. Among them, the operating level of individual factories in the northwest, southwest, and north China regions has been maintained at around 70% or above for a long time. In addition, with the progress of time, some maintenance equipment is gradually restored, and the expected increase in supply and inventory in the future. It is expected that under the risk of accumulated inventory, some individual factories may re-enter the ranks of load reduction.