In May, the domestic polycrystalline silicon market continued to decline, with an exacerbation of the decline. The bargaining power of major manufacturers has decreased, resulting in a significant reduction in prices. According to the Commodity Market Analysis System of Business Society, the monthly decline of single crystal dense materials is 16.67%. The main reason is the oversupply of silicon materials and the weak follow-up of downstream demand for photovoltaics. At present, the mainstream range of single crystal dense materials with a model of first-class solar energy has slipped to 31000 to 36000 yuan/ton.

On the supply side, the operating rate of polycrystalline silicon remained relatively high in May, at around 80% or more. All the equipment in the large factory has started operating, and the supply is showing some pressure. Due to the high inventory of enterprises and the weakened bargaining power of large factories, there has been an irrational decline in silicon materials. On the one hand, the stable production of mainstream large factories, coupled with the addition of new production capacity, has brought incremental growth to the market, and the problem of oversupply performance is becoming increasingly prominent. However, due to the lower operating rate of downstream silicon wafers and the increasing inventory pressure on silicon wafer manufacturers, the performance of silicon material shipments has become increasingly difficult. Silicon material manufacturers have continued to accumulate inventory this month. Until the last week of May, silicon material prices slightly stabilized. The main reason is that most silicon material companies have equipment maintenance, resulting in a slight contraction in production at the end of the month and a relief in supply pressure. But inventory levels are still at a high level.

From the demand side, the downstream demand for photovoltaics in the market was weak in May, with a slight looseness in the production of silicon wafers. This was mainly due to the rising inventory level of silicon wafers. The main reason was the decrease in downstream battery cell procurement, and battery cell manufacturers generally maintained low production to cope with the downturn in terminal installation procurement. It was difficult to digest more silicon wafer inventory, resulting in greater pressure on silicon wafer manufacturers to ship. Therefore, the price of silicon wafers has dropped significantly this month. Generally exceeding 10%. As of the end of May 31st, the mainstream transaction price of single crystal M10 silicon wafers has fallen by 0.4 yuan, with a transaction price of approximately 1.20 yuan per wafer; The mainstream transaction price of G12 has dropped by 0.30 yuan, and is currently reported at 1.80 yuan per piece.

Market forecast: Polycrystalline silicon analysts from Business Society believe that the photovoltaic industry chain is experiencing upstream surplus, causing profit compression. Upstream silicon materials and silicon wafer companies are both in a high inventory stage. Currently, silicon material prices have fallen to the bottom, and the market has shown signs of temporary cessation of decline. However, considering supply expectations and high inventory levels, there is no momentum for prices to rebound in the near future, and it is expected that the bottom will mainly fluctuate.