Report Title - The outlook for the steel market in the fourth quarter of 2025 by Nanhua Futures: A glimmer of hope but lacking momentum [1] Report Industry Investment Rating - Not provided in the content Core Viewpoints - The steel market is expected to show a volatile trend with a ceiling and a floor. The upper pressure comes from the current supply - demand contradiction in the fundamentals and unclear supply - demand adjustment policies, while the lower support is due to the continuous resilience of export demand and the expectation of supply contraction [3]. - The fourth - quarter demand performance is crucial. If demand recovers, the high - supply pattern may continue and drive up prices; if demand remains weak, the risk of oversupply will intensify [7]. - The market is highly concerned about the implementation and enforcement of supply - side policies, especially the "anti - involution" policy [8]. - Although the market has not triggered large - scale negative feedback, the squeezed profit margin has sent a warning signal [9]. Summary by Directory 2. Third - quarter Market Review - In July, driven by the expectation of the "anti - involution" policy and the supply contraction caused by coal mine over - production inspections, the steel market rose. The low inventory at all links in the industry chain led to a bottom - up replenishment and increased speculative demand, resulting in a cost - driven price increase [4]. - In August, after the Politburo meeting in late July did not immediately introduce clear "anti - involution" implementation details, market optimism declined. The trading logic returned to fundamentals. High supply and weak demand led to over - seasonal inventory accumulation and price decline, showing signs of negative feedback [5]. - In September, the price premium from the "anti - involution" expectation was basically digested. The market refocused on macro factors. The cost support limited the downward space, and the market entered a volatile consolidation stage [5]. 3. Core Concerns 3.1 Fourth - quarter Demand Acceptance Capacity - Steel apparent consumption has been stable this year, but recent weak demand has led to inverse - seasonal inventory accumulation. Fourth - quarter demand is crucial for the balance of supply and demand [7]. 3.2 Impact of Supply - side Policies - The market is highly concerned about the implementation and enforcement of supply - side policies, especially the "anti - involution" policy and its potential impact on the steel supply structure and market expectations [8]. 3.3 Whether Negative Feedback Production Cuts Will Be Triggered - The squeezed profit margin has sent a warning signal. The market is closely watching whether negative feedback will form and lead to active production cuts by steel mills [9]. 4. Valuation Feedback and Supply - Demand Outlook 4.1 Valuation Feedback - The recent strengthening of the basis reflects the market's pessimistic expectation of future supply and demand, but it is still in a neutral range in the long - term and seasonal perspective [10]. - The current core contradiction is the over - seasonal inventory accumulation caused by high supply and weak demand. The profit margin is in a neutral - high range, and there is still room for further compression [10]. - The current 01 contract coil - to - rebar spread is above the normal cost difference range. Although it is reasonable based on fundamentals, it is at a high level and showing a weakening trend, indicating a potential downward adjustment in steel valuation [11]. 4.2 Steel Demand Outlook 4.2.1 Real Estate: Yet to Stabilize - The real estate market showed a short - term recovery last year, but sales and prices have weakened again this year. The real estate end's steel consumption, mainly in new construction and construction, is still weak due to factors such as low developer investment willingness and high inventory [16][20]. 4.2.2 Infrastructure: Tight Capital in the Debt - Resolution Context - In 2025, the growth rate of infrastructure investment has slowed down. The power, water, transportation, and water conservancy sectors have all weakened. The current debt - resolution and "anti - involution" policies have restricted investment. The slow issuance of special bonds and the focus on debt - resolution and land acquisition have led to tight infrastructure funds, and the physical workload in the fourth quarter is expected to be low [23][28]. 4.2.3 Manufacturing: Domestic Demand Weakening, External Demand Resilient - Domestic manufacturing demand has shown a "strong - then - weak" trend this year. The "anti - involution" policy and the weakening effect of previous policies have led to a slowdown in domestic demand. However, external demand is expected to remain resilient due to China's product cost - effectiveness and the stable overseas demand environment [36][40]. 4.2.4 Direct Steel Exports: Demand Increment and Cost Substitution - From January to August, China's steel and billet exports increased significantly. The growth is mainly due to overseas demand expansion and cost substitution. However, there are risks such as export inspections and anti - dumping investigations in the future [43]. 4.2.5 Summary of the Fourth - quarter Demand Outlook in 2025 - From January to September, the overall demand showed some resilience, but there may be speculative demand in the third - quarter. In the fourth quarter, demand growth momentum is expected to weaken. Real estate demand will remain under pressure, infrastructure demand will be weak, domestic manufacturing demand will decline, and direct steel exports may slow down [57][59]. 4.3 Supply and Inventory 4.3.1 Supply Overview: Deviation between Third - Party and Statistical Data - As of September 18, the daily average pig iron output and scrap consumption increased compared to last year according to third - party data, but the statistical data shows a decrease in crude steel production. There is a deviation between the two [61]. 4.3.2 How to View the "Anti - Involution" in the Steel Industry? - The market has not achieved the rumored annual crude steel production reduction target. The "anti - involution" policy has not had a significant impact. Steel mills have high production enthusiasm due to good profits. The policy may be included in the "14th Five - Year Plan" for industry governance, but in the short term, steel supply will remain elastic [64][65]. 4.3.3 Whether Negative Feedback Production Cuts Are Needed? - Steel mills still have some profit margins and limited motivation for self - initiated production cuts. If demand remains weak and supply stays high, the market may enter a negative - feedback adjustment stage. The raw material cost support limits the downward space of steel prices [67][78].

Group 1 - The core issue of the current "involution" competition is the mismatch between supply and demand, characterized by strong supply and weak demand in quantity, as well as structural misalignment [1][2] - To address "involution" competition, it is essential to focus on long-term mechanisms such as legal system, policy system, and fiscal and tax system reforms, in addition to short-term supply-demand balance policies [1][2] - The current structural issues in demand require improvements in the legal framework, including the recent amendments to the Anti-Unfair Competition Law and the ongoing revisions of the Price Law and Bankruptcy Law [2][3] Group 2 - The transition from survival-oriented consumption to development-oriented consumption necessitates new quality, quantity, and structural demands from residents [2] - Strengthening the policy system in key areas is crucial, including the establishment of a unified national market policy framework and regulations to prevent unfair competition [3] - Enhancing the fiscal and tax system is vital to mitigate the "involution" phenomenon, which involves clarifying the responsibilities between central and local governments and reforming tax collection methods [3]

1. Report Industry Investment Rating - Not provided in the given content 2. Core Viewpoints of the Report - The Ministry of Industry and Information Technology's plan to promote stable growth in the non - ferrous metals industry restricts the new and under - construction project commissioning speed of alumina, and the alumina industry is expected to undergo a new round of supply - side reform, with market supply pressure under control [2][6]. - Affected by the news, the market may have a short - term concentrated release of bullish sentiment, and alumina will start a phased rebound. The rebound height and duration are greatly affected by sentiment and are highly uncertain [2][6]. - Alumina futures' main contract fell 1.76% last week, closing at 2,901 yuan/ton. The national weighted average price of the spot market on Friday was 3,022 yuan/ton, down 39 yuan/ton from the previous week [4]. 3. Summary by Relevant Catalogs Transaction Data - Alumina futures (active) dropped from 2,953 yuan/ton on September 19th to 2,901 yuan/ton on September 26th, a decrease of 52 yuan/ton. The domestic alumina spot price dropped from 3,061 yuan/ton to 3,022 yuan/ton, a decrease of 39 yuan/ton. The spot premium increased from 133 yuan/ton to 165 yuan/ton, an increase of 32 yuan/ton [3]. - The FOB price of Australian alumina dropped from 323 US dollars/ton to 321 US dollars/ton, a decrease of 2 US dollars/ton. The import profit and loss decreased from 175.36 yuan/ton to 153.51 yuan/ton, a decrease of 21.8 yuan/ton [3]. - The exchange warehouse inventory decreased by 1,182 tons to 149,211 tons, and the factory warehouse remained at 0 tons [3]. Market Review - The supply of bauxite is in a severe situation, but due to strong market wait - and - see sentiment, the ore price has no obvious adjustment. The FOB price of imported bauxite from Guinea in the fourth - quarter long - term contract has dropped slightly compared with the third quarter [2][4]. - On the supply side, alumina supply has increased. As of September 25th, China's alumina production capacity was 114.8 million tons, the operating capacity was 96.3 million tons, and the operating rate was 83.89% [4]. - On the consumption side, electrolytic aluminum enterprises in Shandong continued to transfer production capacity to Yunnan, and some electrolytic aluminum enterprises in Gansu, Guangxi, Xinjiang, and Qinghai released maintenance capacity. Overall, the operating capacity of electrolytic aluminum increased, and the demand for alumina increased [4]. - In terms of inventory, the alumina futures warehouse receipt inventory increased by 71,000 tons to 149,000 tons last Friday, and the factory warehouse remained at 0 tons [2][4][6]. Market Outlook - The cost support of alumina may weaken in the future. The operating capacity on the supply side continues to increase, and the overseas alumina spot price is still weak, with the import window remaining open. It is expected that about 130,000 tons will arrive in October [2][6]. - The electrolytic aluminum enterprises on the consumption side mainly focus on production capacity transfer, with little change in theoretical demand. Before the National Day holiday, some procurement through bidding increased, and the spot trading volume increased [2][6]. Industry News - As of August 2025, China's total bauxite imports reached 141.756 million tons. In August, China imported 18.29 million tons of bauxite, of which 12.326 million tons were from Guinea, and 4.43 million tons were from Australia, reaching a five - year high [7]. - The COBAD bauxite mine in Guinea has been shut down since September 24th due to a general strike. The strike events of Guinean mining enterprises are on the rise, which poses a risk to the global bauxite supply chain [7]. - In August 2025, China imported 94,000 tons of alumina, a month - on - month decrease of 25.4% and a year - on - year increase of 1,392%; exported 180,000 tons of alumina, a month - on - month decrease of 21.4% and a year - on - year increase of 25.6%. From January to August 2025, the cumulative import volume was 488,000 tons, a year - on - year decrease of 61.3%, and the cumulative export volume was 1.753 million tons, a year - on - year increase of 59%, with a cumulative net export of 1.265 million tons [7]. Relevant Charts - The report provides charts on alumina futures price trends, alumina spot prices, alumina spot premiums, alumina month - to - first - continuous spread, domestic and imported bauxite prices, caustic soda prices, power coal prices, alumina cost - profit, and alumina exchange inventory [9][11][13][17][19][25][26][24].

Core Viewpoint - The recent policy announcement from the Ministry of Industry and Information Technology and other departments is expected to positively impact the non-ferrous metals industry, with projected annual growth rates for value-added and production of key metals [3][4]. Group 1: Market Performance - The non-ferrous metals sector has seen a strong bullish trend this year, driven by multiple favorable factors, including the Federal Reserve's interest rate cuts, which have increased metal prices [3][4]. - The non-ferrous leader ETF (159876) experienced a price increase of over 1.6% during the day, with a net subscription of 3 million units, indicating strong market interest [1][3]. Group 2: Policy Impact - The "anti-involution" policy is expected to stimulate supply-side reforms, similar to the effects seen during the 2015 supply-side reform, potentially leading to a recovery in the non-ferrous metals sector [4]. - Major infrastructure projects, such as the Yaxi Hydropower Project, are anticipated to create significant demand for non-ferrous metals [4]. Group 3: Supply and Demand Dynamics - The supply-side constraints, including stricter regulations on rare earth mining and smelting, are expected to enhance the commodity attributes of non-ferrous metals, leading to a tighter supply-demand balance [4]. - Rapid growth in green industries, such as renewable energy and electric vehicles, is projected to significantly increase the demand for metals like copper, aluminum, lithium, and rare earths [4]. Group 4: Future Outlook - Analysts suggest that the combination of monetary easing from the Federal Reserve and domestic policies aimed at optimizing production factors will support rising metal prices and improve market expectations [8].

Core Viewpoint - The Ministry of Industry and Information Technology and eight other departments have issued a plan for the non-ferrous metals industry, targeting an average annual growth of around 5% in value-added and approximately 1.5% in the production of ten non-ferrous metals from 2025 to 2026, with a significant focus on domestic resource development and recycling [1] Group 1: Industry Growth and Policy Impact - The non-ferrous metals industry is expected to see a positive impact from the deep implementation of the "anti-involution" policy, which is changing the supply-demand dynamics in the sector [1] - The "anti-involution" policy is not just a supply-side measure but also a strong demand-side policy, which is anticipated to enhance domestic production factor prices and retain more surplus value within the country [1] - The current timing is favorable for implementing "anti-involution" measures, as excess capacity and price declines are nearing an end [1] Group 2: Investment Opportunities in Non-Ferrous Metals - The focus on copper and aluminum is highlighted, with expectations of steady demand growth for these industrial metals, particularly as the market transitions from supply constraints to demand recovery [2] - Precious metals like gold are expected to benefit from anticipated Federal Reserve rate cuts, which will likely drive up gold prices due to their relationship with real interest rates [2] - Small metals such as tungsten, rare earths, and tin are also seen as promising, driven by geopolitical factors, industry consolidation, and the rise of AI and electronic devices [2] Group 3: Market Dynamics and ETF Insights - Different non-ferrous metals exhibit varying degrees of market conditions and drivers, suggesting a diversified investment approach could be beneficial [3] - The non-ferrous metals sector's leading ETF, which tracks the China Nonferrous Metals Index, includes significant weights in copper (25.3%), aluminum (14.2%), rare earths (13.8%), gold (13.6%), and lithium (7.6%), providing a risk-diversified investment option [3]

Summary of Coal Industry Conference Call Industry Overview - The conference call focuses on the coal industry in China, particularly its efforts to combat "involution" and stabilize prices [1][2][3]. Core Points and Arguments - The State-owned Assets Supervision and Administration Commission (SASAC) emphasizes the importance of stabilizing electricity and coal prices to prevent harmful competition, aiming to raise unreasonable low prices to reasonable levels while avoiding price surges [1][3]. - The coal industry's strategy to combat involution consists of two phases: reducing production to raise prices and eliminating excess capacity to adjust the industry structure. Currently, the industry is in the first phase, focusing on production cuts to restore profitability [1][4]. - Supply-side reforms align with the goals of combating involution, encompassing both production cuts and capacity reduction, which are essential for long-term stability [5]. - The reduction of capacity and structural adjustments are closely linked to carbon neutrality policies, as coal consumption is expected to decline gradually. This necessitates capacity reduction to match changing demand and ensure sustainable development [6]. Future Predictions - China is projected to reach its peak carbon emissions from thermal power by 2027 and from the coal industry by 2028. By around 2030, there may be an oversupply of capacity, requiring policy adjustments to address this [7]. - The coal industry has undergone significant policy changes and market fluctuations since 2010, with a notable recovery in profitability and price stability achieved through supply-side reforms and capacity reductions [8]. Important but Overlooked Content - The SASAC's current approach to price control focuses on maintaining reserve and peak-shaving capacity, allowing for flexible adjustments in production rates to stabilize prices, contrasting with the 2016 strategy of aggressive capacity withdrawal [9]. - The reasonable coal price is estimated at 750 RMB/ton, with potential short-term fluctuations due to policy execution uncertainties, possibly rising to 800-860 RMB/ton before stabilizing back to 750 RMB/ton [10][11]. - The upcoming policies expected to be introduced by the end of this year or early next year will further drive the coal industry's capacity reduction and structural adjustments [9].

Summary of the Conference Call on the Pharmaceutical Industry Industry Overview - The pharmaceutical industry is currently experiencing a period of adjustment, particularly in the innovative drug sector, with leading companies like Innovent Biologics and China National Pharmaceutical Group showing stable fundamentals and product progress meeting expectations [1][4] - The overall sentiment in the pharmaceutical sector remains optimistic despite recent market fluctuations, with no signs of a bubble [2] Key Points and Arguments Innovative Drug Sector - The innovative drug sector is undergoing a rational adjustment, with a focus on companies that can deliver strong performance [3] - The 11th round of national drug procurement is expected to yield positive results, with local alliance procurement rules becoming more reasonable, potentially leading to a reversal in the generics sector [3][20] - Companies such as Kanglong Chemical, Baidu Pharmaceutical, Tianyu Co., and Betta Pharmaceuticals are projected to see significant revenue growth [3][24] Medical Device Sector - The medical device sector is benefiting from a reduction in competitive pressures, particularly in high-value consumables like Nanwei Medical and Xinmai Medical, which have not yet faced centralized procurement [5] - The orthopedic industry is recovering from previous procurement pressures, with companies like Chunli Aikang showing strong performance [5] - Companies focused on domestic bidding markets, such as Mindray and Kaili Medical, are expected to benefit from this trend [5] Customized Consumables - The customized consumables sector is performing well, with Yingke Medical exceeding profit expectations in Q2 and extending order schedules into Q3, indicating a recovery in end-user demand [6] IVD Sector - The IVD sector is under pressure due to policy changes and tax rate adjustments, but the bottom has been solidified, with companies like Mindray and New Industries showing strong overseas export performance [7] Traditional Chinese Medicine - Recommended companies in the traditional Chinese medicine sector include Jiuzhitang, Kangyuan Pharmaceutical, and China Resources Sanjiu, with Jiuzhitang showing significant potential in its stem cell pipeline [8] API Sector - The API sector is expected to benefit from anti-involution policies, leading to a new round of supply-side reforms [1][15] - Companies like Tianyu Co. are experiencing rapid capacity utilization increases, with projected profits exceeding 300 million yuan [15][18] Additional Insights - The blood products sector is facing pressure but is nearing a stabilization point, with new developments in high-purity products expected to create investment opportunities [22] - The raw material industry is anticipated to see long-term improvements due to government policies aimed at reducing chaotic price competition [15][18] - New delivery systems and commercialization scenarios in the pharmaceutical industry, such as Minophagen's GLP-1 delivery system, are gaining attention and providing more investment opportunities [17] Conclusion - The pharmaceutical industry, particularly the innovative drug and medical device sectors, presents a range of investment opportunities despite current market challenges. Companies with strong fundamentals and innovative pipelines are likely to perform well in the coming quarters [1][2][3][4][5][6][7][8][15][18][22]

Summary of the Petrochemical Industry Conference Call Industry Overview - The conference call focused on the petrochemical industry, specifically discussing the recent policy changes and their implications for the sector [1][2][4]. Key Points and Arguments 1. **Policy Changes**: The National Development and Reform Commission (NDRC) has reclaimed approval rights for local refining and ethylene projects to prevent overcapacity and ensure alignment with national strategic directions [1][2][4]. 2. **Supply Chain Stability**: The policy emphasizes the importance of stable supply for key raw materials in the fertilizer industry, such as coal, gas, phosphorus, and sulfur, which presents opportunities for suppliers and high-end material companies [1][2][4]. 3. **Elimination of Inefficient Facilities**: There will be a focus on phasing out outdated facilities that do not meet standards, with strict controls on park expansion to limit low-efficiency, high-pollution projects [1][2][4]. 4. **Encouragement of High-End Manufacturing**: The development of electronic chemicals, high-end polyolefins, ultra-high molecular weight polyethylene, specialty rubber, and functional films is encouraged, particularly in relation to the semiconductor industry [1][2][4]. 5. **Digitalization and Green Initiatives**: The petrochemical parks are expected to undergo comprehensive governance, with a push towards digitalization and green practices, which may lead to the establishment of demonstration bases and regional cooperation [1][2][4]. 6. **Capacity Control**: The policy includes total capacity control for products like refining, ethylene, ethylene glycol, and polyethylene to prevent overproduction [2][4][5]. 7. **Transition Period**: The years 2025 and 2026 are identified as critical for capacity reduction and production limits, with a gradual approach to avoid market volatility [2][14]. 8. **Utilization Rates**: China's ethylene capacity utilization rate is over 80%, with expectations of entering an upward cycle starting in 2026, although older facilities face risks of rectification or closure [2][16]. Additional Important Content 1. **Regulatory Changes**: The industry is facing increased regulatory scrutiny, particularly regarding raw material management and the elimination of outdated facilities [6][9]. 2. **Park Evaluation Standards**: While specific evaluation standards for parks are not yet defined, there is an expectation for comprehensive assessments that will impact operational capabilities and compliance [9][20]. 3. **Technological Development**: Future technological advancements will focus on high-end materials and digitalization, raising entry barriers and emphasizing efficiency over price competition [10][11]. 4. **Global Market Dynamics**: The global ethylene market is experiencing limited new capacity, with regions like Europe and Japan focusing on reducing existing capacity rather than expanding [29][31]. 5. **Local Government Challenges**: Local governments face challenges in implementing policies effectively, requiring coordination among various stakeholders to balance economic growth and environmental protection [17][18]. This summary encapsulates the critical insights from the conference call regarding the petrochemical industry's current landscape and future directions, highlighting the implications of recent policy changes and market dynamics.

Summary of the Conference Call on the Photovoltaic Industry Supply-Side Reform Industry Overview - The conference call focuses on the photovoltaic (PV) industry, highlighting the challenges of overcapacity and the need for supply-side reforms to improve the situation [1][2][4]. Key Points and Arguments 1. **Government Support and Policy Changes** - The government is highly concerned about the PV industry's internal competition and has held multiple high-level meetings to emphasize the exit of backward production capacity [1][2]. - A draft amendment to the Price Law has been released to provide a legal basis for addressing low-price dumping [3]. - The Ministry of Industry and Information Technology (MIIT) has shifted its focus from preventing new capacity to ensuring the orderly exit of backward capacity [2][4]. 2. **Current Challenges in the PV Industry** - The industry faces nominal overcapacity, with overall operating rates only at 40%-50% [1][4]. - Despite some price recovery in the supply chain, the overcapacity issue remains a significant challenge affecting prices, profitability, and competition [4]. 3. **Historical Case Studies for Reference** - The report references the supply-side reforms in China's steel and coal industries from 2016-2017, which successfully eliminated 140 million tons of steel capacity through government intervention and multi-department collaboration [5][7]. - Japan's cement industry underwent three phases of supply-side adjustments, highlighting the importance of government-led initiatives in reducing overcapacity [8]. 4. **Future Policy Directions** - The focus will likely be on energy consumption management in the polysilicon segment, with new regulations expected to reduce effective domestic capacity by approximately 30% [11]. - The emphasis on product quality and the need to eliminate low-quality, low-price competition will be crucial for the industry's future [12][13]. 5. **Mergers and Acquisitions** - The PV industry can learn from Japan's cement industry, where government-led consolidation was followed by market-driven mergers among leading firms [14]. - The current low concentration in the PV industry (e.g., CR6 in polysilicon at about 70% and in battery components at 40%-50%) presents challenges for market-driven consolidation [14]. 6. **Supply-Side Adjustment Pathways** - The adjustment will involve top-level support, market-driven elimination of excess capacity, and technological innovation [15][16]. - The industry is expected to experience a reduction in losses in the third quarter, with various policy signals indicating a potential recovery [17]. Other Important Insights - The report emphasizes the importance of quality in PV components, as they significantly impact the operational efficiency of solar power plants over their 15-20 year lifespan [12][13]. - The ongoing losses in the industry are pressuring second and third-tier companies, which may lead to further consolidation and exit of weaker players [16]. - Investment recommendations include focusing on low-cost silicon material companies, glass manufacturers with strong valuation margins, and battery manufacturers capable of achieving superior profits through technological advancements [19][20]. This comprehensive analysis of the photovoltaic industry highlights the critical need for supply-side reforms, government intervention, and a focus on quality to navigate the current challenges and improve the industry's overall health.

Summary of Key Points from the Conference Call Industry Overview - The conference call primarily discusses the **polysilicon industry** and its dynamics within the **photovoltaic (PV) sector** [1][2][3]. Core Insights and Arguments - **Energy Consumption Standards**: New energy consumption standards may reduce effective polysilicon production capacity by **30%**, down to **2.4 million tons/year**. Non-compliant companies may face rectification or shutdown [1][3]. - **Price Dynamics**: Polysilicon market prices are polarized; resources priced below **52,000 CNY/ton** are in high demand, while those above **53,000 CNY/ton** face limited acceptance. This is attributed to cautious price transmission from components and anticipated hydropower reductions [1][4]. - **Anti-Competition Policies**: The government has strengthened anti-competition policies, introducing penalties for below-cost dumping, which is deemed unfair pricing. This has led to a more robust internal price feedback mechanism [1][5]. - **Profitability Potential**: The average price of polysilicon is approximately **50,000 CNY/ton**, with a cash cost of about **27,000 CNY/ton**, allowing for a net profit of **7,000 CNY/ton**. However, the industry's operating rate is below **70%**, impacting profitability [1][6]. - **Supply Chain Reforms**: Expectations for supply-side reforms in the PV industry are increasing, with a clear logic for price recovery. The commitment to anti-competition measures is crucial for restoring a healthy market structure [1][7]. Additional Important Content - **Recent Price Adjustments**: As of September 5, domestic polysilicon prices have increased, with rod silicon priced at **55,000 CNY/ton** and granular silicon at **49,000 CNY/ton**. The PV sector has shown good performance, primarily driven by energy storage [1][8]. - **Challenges in the Industry**: The polysilicon industry faces challenges such as low operating rates, increased fixed costs due to depreciation, and ongoing losses for some manufacturers despite cost optimization efforts [1][11]. - **Investment Recommendations**: The industry is expected to experience a supply-demand turning point due to anti-competition measures. Key investment areas include polysilicon materials and PV glass, with specific companies recommended for attention [1][14][15]. Conclusion - The polysilicon industry is undergoing significant changes driven by new regulations and market dynamics. The focus on anti-competition measures and supply-side reforms is expected to lead to improved profitability and a healthier market structure in the photovoltaic sector.