CITIC Futures: Rising Anti-Overcompetition Sentiment, Increased Volatility in Polycrystalline Silicon

Recently, market concerns about supply-side disruptions have deepened, and anti-inflationary sentiment has risen again, leading to increased volatility in polysilicon prices. From a supply fundamentals perspective, the current season is a dry season, with polysilicon capacity in Southwest China still under reduction, and northern factories also experiencing maintenance shutdowns, resulting in overall polysilicon output remaining relatively low. On the demand side, polysilicon demand continues to be weak, wafer production schedules remain low, and inventory levels of polysilicon are also increasing. Overall, weak demand has dragged down spot prices of polysilicon, but in the medium to long term, considering that polysilicon supply is also shrinking simultaneously and leading companies are strengthening integration and mergers, the supply and demand for polysilicon are expected to tighten in the future, and prices may fluctuate widely. (CITIC Futures)