The Zhitong Finance App learned that on May 15, the Silicon Industry Branch issued an article stating that the current price of polysilicon has broken through the cash costs of all production companies. Under high inventory pressure, some small production capacity and old production capacity have been stopped and overhauled. The vast majority of companies are more willing to raise prices, and they are unable to sell out due to low prices. Silicon material manufacturers face a situation where they lose money when they sell, so only some companies with cash flow difficulties and samples from new plants can still accept price reduction transactions. Most production manufacturers have already used discontinuation of production and maintenance methods to deal with the bottom price, and the supply of silicon material will decrease starting this month.

Polysilicon prices continued to decline this week. N-type prices were relatively consistent, and P-type prices were chaotic. Among them, the transaction price range for n-type silicon rod-shaped silicon was 4.10-45,000 yuan/ton, and the average transaction price was 43,000 yuan/ton, down 5.08% from the previous month. The transaction price range for p-type compact materials was 340-39,000 yuan/ton, and the average transaction price was 37,300 yuan/ton, down 4.36% from the previous month. The price difference of n/p rod-shaped silicon is 0.44 million yuan/ton. The transaction price range for n-type granular silicon was 37,500 to 39,000 yuan/ton, and the average transaction price was 37,500 yuan/ton, down 6.25% from the previous month.

According to statistics, 4 companies have traded n-type rod-shaped silicon this time, and 3 companies have traded for p-type rod-shaped silicon. Most of them have sold loose orders. The volume of transactions has decreased significantly compared to last week, and market pessimism has intensified. At present, prices have broken through the cash costs of all production companies. Under high inventory pressure, some small production capacity and old production capacity have already been stopped and overhauled. The vast majority of companies are willing to raise prices, and they are unable to sell out due to low prices.

However, looking at the moment, demand for terminals has not recovered, silicon wafer inventories continue to accumulate, silicon wafer prices continue to decline, and silicon procurement budgets have been further lowered; prices of raw silicon powder and industrial silicon are stabilizing, making it difficult to reduce silicon production costs. In summary, silicon manufacturers are currently facing a situation where they lose money when they sell, so only some companies with cash flow difficulties and samples from new plants can still accept price reduction transactions. Most production manufacturers have already used discontinuation of production and maintenance methods to deal with the bottom price, and the supply of silicon materials will decrease starting this month.

As of this week, there are a total of 17 domestic polysilicon manufacturers. 5 companies have begun maintenance, which has led to a certain reduction in production. The rest of the companies have plans for layout maintenance and load reduction. Three new companies are expected to start production this month. Overall, production capacity release is less than expected. Taken together, production is expected to decrease slightly larger than the increase this month. If corporate maintenance exceeds expectations, production is expected to fall back to 180,000 tons this month.