In October, domestic polycrystalline silicon experienced a significant decline due to fluctuations. According to the Commodity Market Analysis System of Business Society, the monthly decline of single crystal dense materials is 1.93%. The main reason is that the downstream market generally resists high prices, leading to an increase in supply and a buildup of inventory in enterprises, weakening bargaining power, and reducing prices to clear inventory. According to data from Business Society. 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 70-75000 yuan/ton.

On the supply side, silicon material manufacturers have maintained a reasonable level of operation, and devices that were previously shut down due to power constraints have been operating one after another. The superposition of new production units continuously releases production, bringing about an increase in supply, completely reversing the supply and demand pattern, and gradually revealing oversupply. In addition, there is a heavy wait-and-see sentiment at the downstream Lajing end, and actual transactions were less than expected. This month, large silicon material factories have all experienced a backlog phenomenon.

On the demand side, the market demand in October was relatively weak, and the overall inventory of silicon wafers continued to rise. The market entered a stage of accumulation, and some second tier silicon wafer manufacturers showed a clear willingness to reduce production. The profits of silicon wafer factories were compressed to a low level, and most of the crystal drawing factories have reduced their procurement frequency to force silicon material manufacturers to lower prices. The overall transaction within the month was average, and the competition between upstream and downstream silicon material and silicon wafer manufacturers intensified. The quotation of silicon wafers began to accelerate in the middle of the month, and as of the end of the month, the decline in model M10 single crystal silicon wafers was significant, with a monthly drop of 0.95 yuan, a decrease of nearly 30%. The mainstream transaction price fell to 2.40 yuan per wafer; The price of G12 single crystal silicon chip has dropped by 0.8 yuan, and the current mainstream transaction price is 3.40 yuan per chip.

From the demand for downstream battery cells, it can be seen that the production of downstream battery cells has remained stable, but there are signs of a slowdown in downstream component procurement. It is not ruled out that prices will continue to decline in the future. The overall price decline in October was not significant. From the perspective of terminal components, the demand for overseas projects is mainly reduced, which will become a demand constraint. However, the demand for centralized installation in China is still on the rise, which ensures that there will not be too much fluctuation in demand. Overall, it is mainly balanced.

Future Market Forecast: The supply pressure in the silicon material market has increased in the near future, and the accumulated inventory in the later stage has not ended. There is still a possibility for enterprises to continue to lower prices. Moreover, there has not been much improvement in demand, so the contradiction of silicon material oversupply is difficult to alleviate in the short term, and it is expected that silicon material will continue to operate in a weak manner.