According to data from Solarbe Consulting's price tracking, polysilicon prices declined slightly last week, with the average prices of N-type recharged, dense, and granular polysilicon being 39,200 yuan/mt, 35,600 yuan/mt, and 37,000 yuan/mt, respectively. Recently, polysilicon producers have continued to reduce their production schedules, and the issue of inventory backlog among polycrystalline silicon producers has become prominent, making it difficult to reverse the downward price trend in the short term. Prices in the wafer and solar cell segments have remained stable. In terms of PV modules, prices in the PV industry chain have rebounded since March. Despite the passing of the "430" installation rush period, the installation enthusiasm in May has not yet subsided. However, industry insiders generally believe that this price rebound is essentially just a temporary recovery amidst the interplay of industry supply and demand and market dynamics. As the installation rush subsides, the market price of modules has already shown a downward trend.

On May 8, after hitting a historic low of RMB 34,375 yuan/mt during intraday trading, the main polysilicon futures contract rebounded strongly, closing up 2.43% on the day. On May 9, it continued to open higher, surging over 6% at one point during intraday trading, showing strong performance in the morning session. According to SMM, the strong rebound in the main polysilicon futures contract may primarily be related to the limited delivery brands held by several of the five major delivery enterprises in the market (mostly concentrated in the low thousands of mt). As the delivery period approaches, the limited spot supply has left bears unable to deliver sufficient goods for delivery as required by the contract.

[SMM Weekly Review: Intense Price Competition in the Cell Market, Wafer Prices Under Pressure and Weakening] For P-type cells, the mainstream quotations for 182P are 0.29-0.295 yuan/W, with a significant contraction in overall demand scale. For N-type cells, the quotations for 183N are 0.26-0.27 yuan/W, for 210RN are 0.26-0.27 yuan/W, and for 210N are 0.275-0.285 yuan/W. Among them, the prices of 210RN and 183N have fallen the fastest recently, reaching the lowest point for the entire year of 2024. There are two main reasons for this: First, the continuous decline in upstream wafer prices has driven down cell costs; Second, the shrinking end-use demand has led to an increase in industry inventory levels, motivating solar cell plants to reduce prices and ship goods. Currently, the market is observing the future trend of wafer prices, with module plants showing low purchase willingness and testing the downward elasticity at the edge of the 0.26 yuan price point. Some leading cell producers still adhere to a strategy of standing firm on quotes. If wafer prices have reached the bottom, cell price reductions would cause revenue to fall below the cost line; if wafer prices continue to decline, there is room for cell prices to drop further.

[SMM Analysis: Post-Holiday Downstream Procurement Slumps Again, with Local DMC Transaction Prices Falling by 200 Yuan/mt] According to SMM, today's domestic local DMC transaction prices have dropped to around 11,300 yuan/mt, with the average price remaining unchanged compared to the beginning of the week. A monomer enterprise in Shandong Province quoted an opening price of 11,500 yuan/mt for DMC on its online mall in recent days, a decrease of 200 yuan/mt from the previous quote. Today, some other domestic monomer enterprises have also slightly lowered their DMC quotations. As of now, the mainstream quotations in the market are around 11,500 yuan/mt, with transaction prices dropping to 11,300 yuan/mt. After the holiday, downstream enterprises have seen a renewed slump in transactions.

Recently, PowerChina New Energy Corporation released a tender announcement for the procurement of N-type HJT PV modules for the 5.8MW distributed PV power generation project at Xiaozhilin Lingzhi Base in Nanshan Town, Foshan City. According to the announcement, in line with the project's construction requirements, monocrystalline silicon bifacial double-glass N-type HJT PV modules with a module power of 700Wp and solar cell size of 210mm will be procured, with a total procurement capacity of 7.028MWp.

【Operating Rates of Silicon Metal Sample Enterprises Decline in North China, Rise in South China】The weekly production of silicon metal sample enterprises in Sichuan was 965 mt, with a weekly operating rate of 15%, increasing WoW. This was mainly driven by the production release following the resumption of production by a small number of silicon enterprises in Sichuan at the end of April and May. Currently, the number of operating furnaces in the entire Sichuan region has increased to over 20 (with a total of over 130 furnaces). The enterprises that have resumed production are mainly those supporting silicone or polysilicon production.

[SMM: Shipments Dominate, Social Inventory of Silicon Metal Declines] According to SMM statistics, the total social inventory of silicon metal in major regions reached 596,000 mt on May 8, down 7,000 mt WoW.

【Market Gloomy, Silicon Metal Continues Weak Performance】: Silicon Metal: This week, the futures and spot prices of silicon metal continued to decline, with prices breaking through lower levels, casting a gloomy shadow over the market. As of May 8, the price of SMM east China oxygen-blown #553 silicon ranged from 9,000 to 9,300 yuan/mt, down 250 yuan/mt from before the holiday. The price of #441 silicon ranged from 9,300 to 9,500 yuan/mt, also down 250 yuan/mt from before the holiday. The price of #421 silicon (used in silicone) ranged from 10,900 to 11,100 yuan/mt, down 100 yuan/mt from before the holiday. Quotations from different suppliers varied widely, leading to market price confusion. The downstream transaction price for low-priced oxygen-blown #553 silicon fell below 9,000 yuan/mt. In the futures market, the main SI2506 contract was in the doldrums, closing at 8,315 yuan/mt at the end of the trading day on May 8, down 225 yuan/mt or 2.6% from before the holiday. Downstream users and traders of silicon metal were actively inquiring about prices, but transactions were still mainly on a need-to-buy basis.

【Weekly Review of Aluminum Scrap and Secondary Aluminum: Off-Season Effects Emerge, Insufficient Upside Momentum for ADC12 Prices】The aluminum scrap market exhibited a differentiated adjustment trend after the Labour Day holiday. As of May 8, SMM A00 primary aluminum spot closed at 19,620 yuan/mt, down a cumulative 440 yuan/mt from the pre-holiday level (April 30). Aluminum scrap prices generally followed the decline in primary aluminum, but significant differences were observed across varieties and regions.

[Both Prices and Demand for Silica and Silicon Coal, Raw Materials for Silicon Metal, Remain Weak; Petroleum Coke Prices Predominantly Stabilize and Decline in the Short Term] Downstream demand continues to be weak, with prices for silica and silicon coal, raw materials for silicon metal, experiencing decreases in some regions. Overall, petroleum coke prices are predominantly expected to stabilize and decline in the short term.