Polysilicon prices to remain in downturn

Mainstream traded price of P-type dense polysilicon was 50-54 yuan/kg this week, while that of N-type polysilicon was 60-65 yuan/kg. Polysilicon orders were under negotiation this week. Silicon wafer makers still kept pushing for lower purchase prices due to cost reduction pressure and bearish sentiment, even after polysilicon makers have already cut their offers. Players expect transaction prices to fall below 50 yuan/kg and severe oversupply of polysilicon. In addition, overcapacity in downstream sectors will also pressure polysilicon prices in the future.