In August, the domestic polycrystalline silicon market continued its upward trend in late July, with continuous growth. Due to the easing of market supply and demand pressure, according to the Commodity Market Analysis System of Business Society, polycrystalline silicon rose by 4.26% in August. As of the end of the month, the mainstream range of single crystal dense materials with a model of primary solar energy level has been maintained at 70-85000 yuan/ton.

On the supply side, silicon material manufacturers have experienced a decline in production, mainly due to the significant impact of centralized power restrictions on manufacturers’ devices in August, leading to the shutdown of some devices and a certain impact on production. In addition, although the new production capacity of silicon materials has been gradually released, the increment is limited, and the overall inventory is at a low level; The silicon material remained relatively tight throughout August, which is also the main reason why silicon material prices can continue to rise. Due to timely replenishment of downstream silicon wafers, the performance of manufacturers in signing orders is optimistic; Downstream silicon wafers have seen a rebound in demand for silicon materials. The easing of supply pressure is the main reason why silicon material prices have bottomed out.

On the demand side, the market demand gradually followed up in August, and the downstream silicon wafer operating rate remained high, supporting the demand for silicon materials. Especially though there are high temperature power restrictions in summer, the actual output impact is not significant for silicon wafer manufacturers. The operating rate of silicon wafer enterprises is relatively stable, which brings benefits to silicon material procurement. The quotation for silicon wafers has been repeatedly raised, with the price of single crystal M10 rising from 2.95 yuan at the beginning of the month to 3.35 yuan at the end of the month, and G12 single crystal silicon wafers rising from 3.9 yuan to 4.35 yuan. But in the future, the trend of increasing silicon wafer inventory may create constraints on prices in the short term; From the perspective of terminal demand, there is no significant increase in the procurement demand for silicon wafers in the battery and component sectors; This may result in the price increase of silicon material being difficult to maintain for too long.

Future forecast: The supply of silicon materials in the market will remain reasonable and stable in the near future, but there is also a risk of inventory accumulation in the future as the release of new production capacity increases. Moreover, there has not been much improvement in demand, so the tight supply of silicon materials may gradually ease, and there is little possibility of a retaliatory rebound in the future. Polycrystalline silicon analysts from Business Society believe that prices are expected to maintain a narrow adjustment pattern in the near future.