Entering mid to late February, a new round of follow-up gains will be launched! Based on recent market trends, yesterday's DMC quotation remained stable at 13400-13800 yuan/ton, but most individual factories are gradually implementing production reduction plans and releasing a new round of upward signals. Midstream and downstream enterprises have also felt the momentum of the upstream, with some actively stocking up and others having more inventory, temporarily maintaining a wait-and-see attitude and stocking up at low prices. However, judging from the determination of individual factories to reduce production in the past two weeks, DMC prices are unlikely to change their minds in the short term, and there is a strong expectation of stabilizing and exploring price increases. In short, the joint production reduction and price increase behavior of individual factories forms a transmission loop of "production reduction cost increase price increase", and supply contraction will become the core driving force for price increase in the short term. A new round of trend nodes is expected to come this week, let's see if individual factories have any price adjustments today.

On the cost side: On the supply side, the industry is currently in a dry season, with increasing differentiation between the north and south. However, the operating level of large factories in the north is still relatively high, and some silicon plants in Inner Mongolia have added new silicon furnace operations. There is an expectation of increased supply in the future; In terms of demand, last week's polysilicon prices remained stable, with a slight increase in market transactions and inventory still to be consumed. The production reduction and price increase of organic silicon have reduced the demand for industrial silicon. Overall, under the drag of downstream demand, the supply side is still relatively abundant. However, spot prices are low, and silicon factories have a low willingness to further reduce prices. Currently, the price of 421 # metal silicon has stabilized at 11400-12450 yuan/ton, and futures continue to fluctuate at a low level. Yesterday, the closing price of the main contract Si2505 was 10610 yuan/ton. It is expected that there will be significant resistance to the rebound of silicon prices in the short term, and the market will continue to operate at a low consolidation level. In terms of operating rate: Based on this week's production capacity adjustment, some units in East China, North China, and Shandong regions have plans to reduce production through maintenance. In the short term, the operating rate will fall below 70%. The operating rate will continue to be adjusted based on the follow-up of new orders. In short, individual factories have unanimously reduced production at a guaranteed price, and there is still an expectation of a decrease in operating rates in the future.