[Xinjiang Sample Weekly Production Decreases, Weekly Silicon Metal Supply Falls MoM] According to market feedback, from June 27 to July 3, the weekly production of sample silicon metal plants in Xinjiang was 24,700 mt, with a weekly operating rate of 51%, a significant decrease WoW. The production cuts in silicon metal at large plants in Xinjiang mentioned last week were realized this week. Additionally, one plant area cut production and suspended operations of five silicon furnaces for maintenance this week. As of Thursday this week, the production cuts had not yet been resumed, resulting in a relatively large MoM decrease in weekly production. The operating rates of other silicon enterprises in Xinjiang were basically stable.

[SMM Analysis: Silicone Production Continues to Increase, Limited Inventory Buildup During Off-Season Due to Strong Demand] According to SMM statistics, domestic silicone DMC production in June increased by 13.75% MoM from May, and decreased by 1.60% YoY. In June, the operating load of most domestic silicone monomer enterprises increased. After continuous production cuts and shutdowns over several months, the number of silicone plants available for maintenance decreased recently. Therefore, the overall increase in operating capacity led to a rise in silicone production. Regarding subsequent operations, although some monomer enterprises in China still experienced a decline in operating load in July, the overall impact was relatively limited. It is estimated that silicone production in July will increase by 1.53% MoM from June.

[Weekly Review of Aluminum Scrap and Secondary Aluminum: Off-season Aluminum Scrap Market Stalls at High Levels, Cost Pressure for Secondary Aluminum Alloy Remains Unsolved] Overall, with no substantial improvement in demand, prices encounter resistance in rising, but the logic of cost support remains. It is expected that secondary aluminum alloy prices will maintain a rangebound fluctuation in the short term.

According to the Ministry of Industry and Information Technology (MIIT), on July 3, Li Lecheng, Secretary of the Party Leadership Group and Minister of the Ministry of Industry and Information Technology, chaired the 15th Manufacturing Enterprise Symposium to thoroughly study and implement the important instructions of General Secretary Xi Jinping, implement the decisions and arrangements of the CPC Central Committee and the State Council, focus on accelerating the high-quality development of the PV industry, and listen to the situation briefings, as well as suggestions and opinions from enterprises and industry associations in the PV sector.

[Multiple factors drive the center of spot silicon metal transactions higher]: This week, both spot and futures prices of silicon metal held up well compared to last week. In the futures market, the main continuous contract fluctuated considerably during the week, with a high of 8,285 yuan/mt and a low of 7,705 yuan/mt. It closed at 8,010 yuan/mt at the end of Thursday's trading session, up 290 yuan/mt WoW. In the spot market, prices for multiple grades rose. Today, SMM east China oxygen-blown #553 silicon was priced at 8,600-8,800 yuan/mt, up 500 yuan/mt WoW. #441 silicon was priced at 8,800-9,000 yuan/mt, up 400 yuan/mt WoW, and #421 silicon was priced at 8,900-9,100 yuan/mt, up 300 yuan/mt WoW. Spot silicon metal traded at a premium to futures prices, with spot prices following futures higher after the futures market rose.

[SMM: Arrivals in Xinjiang Increase, Weekly Social Inventory of Silicon Metal Rises WoW] According to SMM statistics, the total social inventory of silicon metal in major regions was 552,000 mt on July 3, decreasing by 10,000 mt WoW.

[Weak Pressure on Silica and Silicon Coal, Stalemate in Electrode Market, Narrowing Gain in Petroleum Coke] Silica: Inventory pressure at mine entrances, with significant shipping pressure. Silicon coal: The market shows a differentiated pattern. Electrode: A tug-of-war between expected cost-driven price increases and the reality of weak demand. Petroleum coke: The market continues to rise, but upward momentum has significantly slowed.

[SMM Weekly Review: Polysilicon Prices Rise Amid "Anti-Cut-throat Competition" Quotations, Auxiliary Material Prices Expected to Rebound] This week, the price index for N-type polysilicon was 35.6 yuan/kg, with N-type recharging polysilicon priced at 36 yuan/kg and granular polysilicon at 34 yuan/kg. The increase in polysilicon prices was mainly influenced by the quotations from polysilicon enterprises, which were based on self-regulation and cost-based pricing. On July 1st, the government held the sixth meeting of the Central Financial and Economic Affairs Commission, where it once again mentioned "anti-cut-throat competition" and the need to regulate enterprises' low-price and unnecessary competition in accordance with laws and regulations, which also played a certain role in promoting the market. Currently, wafer enterprises have not yet universally and formally accepted the quotations, and subsequent transactions remain to be seen.

[SMM Weekly Silicone Review: Costs Rise Along with Downstream Demand Entry, Short-term Prices Maintain Fluctuating Trend] This week, domestic DMC prices were quoted at 10,300-10,600 yuan/mt, remaining stable WoW. This week, DMC prices quoted by monomer enterprises in Shandong were 10,300 yuan/mt, with prices temporarily stable. This week, DMC prices quoted by other monomer enterprises in China were 10,400-10,600 yuan/mt. This week, domestic market prices temporarily remained stable. After the entry of rigid demand in the market in the early stage, the market transaction enthusiasm declined somewhat this week. In addition, there has been a significant increase in supply recently, and the market supply surplus has begun to manifest. However, silicone costs have risen recently, so it is expected that DMC prices will fluctuate rangebound in the near term.

On July 1, Hangzhou New Energy Investment and Development Co., Ltd. announced the shortlisted candidates for the centralised procurement of PV modules for 2025. The project was divided into two sections. The shortlisted candidate for Section 1 was Chint New Energy Technology Co., Ltd., with a bid price of 92,996,640 yuan and a unit price of 0.70452 yuan/W. The shortlisted candidate for Section 2 was GCL SI Technology Co., Ltd., with a bid price of 62,568,000 yuan and a unit price of 0.711 yuan/W.