The average transaction price in the industry declined this week. Specifically, prices for Tier-1 manufacturers and granular silicon remained relatively stable, while prices for mixed feedstock or bundled products from some companies dropped significantly. The primary cause of this week’s price decline is still weak demand. Amid the ongoing downtrend, companies are facing mounting sales pressure, with some forced to cut prices to clear inventory due to shipment or maintenance pressures. Currently, the low-priced inventories of non-leading enterprises have been mostly sold out, leaving only a small amount of feedstock from production line transitions.
Future price trends will largely depend on downstream production schedules and procurement pace. Based on current conditions, there has been no improvement. Wafer production in June is expected to see a slight decline compared to the previous month, prompting downstream companies to continue prioritizing cost-effective procurement strategies. As of now, there are 11 polysilicon producers in operation, most of which are running at reduced capacity. Although there have been widespread rumors of increased operating rates in June, most are due to production line transitions or capacity replacements. Overall production in June remains stable, with no added supply pressure.
Looking ahead to July, two additional polysilicon producers plan to undergo maintenance, which will lead to a notable decrease in output. Coupled with the industry's year-long struggle with cost inversion, polysilicon prices are now approaching their bottom threshold. Therefore, a significant further decline in the short term is highly unlikely.
Source：https://mp.weixin.qq.com/s/O_0A86rZSJRzNuYB3qT8Ow