First Futures: Affected by market news, the PS2605 contract rose over 4% at midday.

According to Caixin, reporters learned from multiple industry chain insiders that Elon Musk’s team has recently been “sizing up” China’s photovoltaic industry chain, with a heterojunction equipment manufacturer already signing a contract.
Today at midday, the main contract for polysilicon stopped falling and rebounded, fluctuating strongly to 51,195 yuan/ton, an increase of over 4%.
On the supply side, according to SMM, affected by the suspension of production at leading companies, polysilicon output in February saw a significant month-on-month decline, and some other companies also reduced production.
Although sellers’ willingness to hold prices has eased, downstream buyers are cautious about purchasing high-priced raw materials, leading to light market transactions and accumulating polysilicon inventories.
The government has adjusted the export tax rebate policy for photovoltaic products, which may boost demand. However, due to the rapid rise in silver prices earlier, increased costs have resulted in low willingness to expand production of solar cells.
Supply expectations have narrowed, and the adjustment of export policies has improved demand outlooks. Coupled with the ongoing anti-inflation trend, polysilicon prices have some support.
But currently, weak demand has caused polysilicon inventories to continue accumulating last week, putting pressure on polysilicon prices.
Yesterday, market rumors suggested that companies would again hold prices, leading to a rebound in the main contracts, and today market news has attracted attention, with midday main contracts rising sharply again.
Pay attention to whether the photovoltaic industry meeting tomorrow (the 5th) will meet market expectations; for now, it’s best to remain cautious.
Recent market sentiment has been changing rapidly, so be mindful of position risk management. (First Capital Futures)