Latest Update in the SMM Market

The path for joint mergers and acquisitions (M&A) and restructuring in the highly anticipated polysilicon sector has begun to take shape. During this year's SNEC exhibition, Lan Tianshi, Co-CEO of GCL Technology (03800.HK), revealed in an exchange with media outlets such as Cailian Press that currently, leading enterprises in the industry are taking the lead in establishing a company operated by professional managers through a model of "direct capital contribution + debt". This company aims to achieve capacity exit and controlled output through acquisitions, and then repay liabilities through profits, thereby promoting the orderly exit of industry capacity. "In the future, participants may invest and repay debts with real money through equity or forms such as limited partnerships (LPs)," Lan Tianshi said.

[Spot Silicon Metal Prices Consolidate, Polysilicon Price Center Weakens]: This week, spot silicon metal prices consolidated. In the spot market, SMM east China oxygen-blown #553 silicon was priced at 8,000-8,300 yuan/mt, unchanged WoW. #441 silicon was priced at 8,400-8,600 yuan/mt, unchanged WoW. #421 silicon was priced at 8,400-9,000 yuan/mt, unchanged WoW. In the futures market, the main silicon metal contract Si2507 fluctuated considerably around 7,300-7,550 yuan/mt. Futures prices rose by approximately 200-300 yuan/mt WoW. After the futures market rose, spot-futures price spread quotes remained stable, with absolute prices increasing WoW. There was a strong sentiment among downstream buyers of silicon metal to drive down prices, and their acceptance of high prices was poor. The availability of low-priced cargoes in the market decreased, and the transaction center for some specifications moved higher WoW.

[SMM Weekly Review: Polysilicon Prices Continue to Fall, with Downward Expectations for Solar Cell Prices] This week, the price index of N-type polysilicon was 35.11 yuan/kg, N-type recharging polysilicon was priced at 35-37 yuan/kg, and N-type mixed polysilicon was priced at 31-35 yuan/kg. Polysilicon prices continued to decline, and polysilicon manufacturers may have certain plans to increase production in the future. Wafer prices weakened, and wafer companies' enthusiasm for polysilicon procurement decreased. Crystal pulling plants had a more pronounced mindset of driving down prices, and bearish sentiment still existed in the market. Some market participants believed that prices might hit bottom in July-August.

[SMM Silicon-based PV Morning Meeting Summary: Polysilicon Prices Experience Some Tug-of-War, Module Scheduled Production Further Reduced] Over the weekend, the price of N-type recharging polysilicon was 35-38 yuan/kg, and the N-type polysilicon price index was 35.2 yuan/kg. Last week, polysilicon prices were largely stable. During the non-peak order signing period, market transactions were relatively limited, with crystal pulling plants and major polysilicon producers engaging in some price negotiations for dense recharging polysilicon around the 34-36 yuan/kg range.

[SMM Weekly Review: Cell Prices Continue to Decline, Polysilicon Prices Remain Stable for Now] This week, the price index for N-type polysilicon was 35.21 yuan/kg. N-type recharging polysilicon was priced at 35-38 yuan/kg, while N-type mixed polysilicon was priced at 31-36 yuan/kg. Overall, polysilicon prices were largely stable. Multiple transactions of polysilicon were recorded before the holiday, with small factories closing deals at 32 yuan/kg and some high-quality mixed polysilicon from large factories closing at 35 yuan/kg. The most-traded contracts of enterprises maintained a quoted price of 36-37 yuan/kg for dense recharging polysilicon. Market transactions were weak after the holiday. A domestic base resumed production this week, attracting market attention. Prices remained stable for now, with the market closely monitoring subsequent supply conditions and the latest wafer transaction status.