This week (10.23-27), the domestic polycrystalline silicon market experienced a significant decline, with a significant drop in domestic supply prices and a certain degree of decline in imported supply. According to the Commodity Market Analysis System of Business Society, polycrystalline silicon experienced a weekly decline of 8.71%. At present, the mainstream range of single crystal dense materials with a model of first grade solar energy has slipped to 70000-75000 yuan/ton.

On the supply side, the devices affected by the accident in the early stage have now resumed operation, and the newly added production capacity has been gradually released, achieving mass production. The domestic supply has significantly increased, and the shipping speed has slowed down, causing silicon material manufacturers to accumulate inventory. The weakened bargaining power has forced silicon material manufacturers to lower prices for shipment.

From the perspective of downstream silicon wafers, the operating load of silicon wafer enterprises has decreased, mainly due to the backlog of inventory from manufacturers in the early stage, coupled with a slowdown in downstream procurement. The inventory level of silicon wafers continues to operate at a high level, and the crystal pulling end can only lower its own operating rate to alleviate the oversupply situation. The M10 monocrystalline silicon chip has experienced a significant decline, with a weekly drop of 0.3 yuan, a drop of over 10%, and the mainstream transaction price dropping to 2.40 yuan per chip; The quotation for G12 single crystal silicon chip has dropped by 0.2 yuan, and the current mainstream transaction price is 3.40 yuan per chip.

From the perspective of the terminal demand side, the prices of battery cells and components have been inverted, with a significant drop in battery cell prices, with a weekly drop of over 10%. The average price of single crystal M10 battery cells has dropped to 0.51 yuan, and G12 battery cells have dropped to 0.53 yuan. Although the domestic installation rate is basically stable, external orders have decreased and overall terminal demand has slowed down.

Future forecast: Polycrystalline silicon analysts from Business Society believe that the recent increase in demand in the silicon material market is insufficient, and it is necessary to continue to follow up. Coupled with expectations of increased supply, prices will continue to loosen and decline in the future.