[SMM analysis] The price of polysilicon dropped by nearly 10 yuan/mt

SMM learned that the price of N-type polysilicon plummeted again, with prices of some high-quality N-type silicon resources as low as 60 yuan/kg.

According to SMM, rod silicon prices were below 60 yuan/kg in the market since the first half of last week. However, at that time, they were mostly quoted by a small factory with lower quality or the expected price of some crystal pullers. Mainstream market prices did not show sharp decline. Most leading companies chose to suspend quotations or transactions, and the market fell into a stalemate.

The inventory of polysilicon plants continues to rise. As of last weekend, polysilicon inventory exceeded the 150,000 tons mark. Under the pressure of inventory and orders signed, polysilicon plants began to quote prices and negotiate with downstream crystal pullers.

In line with previous market expectations, the quotations of polysilicon plants have begun to fall. According to SMM, prices for some high-quality resources currently under negotiation have also fallen to around 65 yuan/kg. Last weekend, the quotations of some leading manufacturers for some crystal pulling plants dropped to about 62 yuan/kg. Some orders have been sold at around 60 yuan/kg.

It is very likely that large-scale order signings will be concentrated before the Qingming Festival, and the market expects the mainstream signing prices to be as low as around 50-60 yuan/kg.

The overall silicon wafer production schedule was too much higher than the actual downstream demand. The collapse of silicon wafer prices will affect the price of polysilicon. Whether the silicon wafer production is reduced or the price is maintained, the price of polysilicon will be reduced.