In May, the domestic polysilicon market continued its upward trend since 2022, and the price continued to rise. According to the monitoring of the business community, the monthly increase of polysilicon was 7.26%. The main reasons for the rise of silicon materials are tight supply and strong demand. The downstream silicon wafer manufacturers raised their prices to support, and the high start-up rate of silicon wafers ensured the stable purchase volume; The profit of battery chip and module manufacturers has improved, and the price of imported silicon material has also remained high. At the end of the month, the price range of polycrystalline silicon material was 220000-230000 yuan / ton, and the price range of single crystal material was 250000-265000 yuan / ton.

In terms of supply, the supply of silicon material enterprises was stable this month. The operating rate of domestic silicon material manufacturers is relatively high. There are 12 domestic polysilicon production enterprises in production. In the whole may, 1-2 of them carried out equipment maintenance and overhaul, which affected part of the output. In addition, the supply increased slightly this month, and the increase was mainly from the release of expanded production capacity of Asian silicon and Yongxiang. The two offset each other, and the overall supply increased slightly compared with the previous month. At present, the supply is still tight compared with the relatively strong demand.

Most of the large manufacturers’ orders in June have been signed at the beginning of the month, and some scattered orders have flowed out, continuously pushing up the market reference price of silicon materials. At the end of the month, enterprises successively signed new orders in July, and some enterprises completed the signing, with the demand increasing. The continuous tight supply is the main reason for the continuous upward trend of silicon material price.

In terms of intermediate products, some large silicon wafer manufacturers continued to raise prices this month. In the middle of the year, central raised the quotation of some silicon wafer models. Longji did not adjust the price for the time being, and announced that the quotation was flat at the end of April. However, at present, the price of silicon wafer has reached an unprecedented high, which has formed a strong support for silicon material and put great pressure on downstream battery chips and components. In the middle and late ten days, silicon wafers are operating at a high level, and the price tends to be stable. Near the end of the month, the mainstream transaction price of M6 was stable at about 5.72 yuan / piece, while the mainstream transaction price of M10 was maintained at about 6.86 yuan / piece. The supply of G12 silicon wafer was slightly tight. It rose slightly this month, and the mainstream transaction price was about 9.12 yuan / piece.

Battery and components: the market demand for battery and components is stable this month. Recently, the game between battery and downstream components is obvious. Component enterprises have strong resistance to high priced battery and slow down their procurement. Therefore, the power to increase the price of battery is insufficient, and battery enterprises also face the risk of accumulating the inventory. The price of components is mainly stable. The high price of components reduces the willingness to purchase terminal power stations, and the demand is slightly lower than that in the previous period. However, supported by favorable policies, some places are still hot. In addition, in terms of exports, due to Europe’s efforts to develop new energy in order to get rid of Russia’s traditional energy dependence, component exports have been boosted and external demand has increased.

In the future, the polycrystalline silicon analysts of the business community believe that the photovoltaic industry is still favored by the policies in the medium and long term, and the bull market may continue. However, with the increase of photovoltaic cost upstream, the long-term rise will also restrain the growth of demand. If the subsidy declines in the later stage, the policy support will be reduced, and the silicon material will also have a callback risk.