Report Industry Investment Rating - Not provided in the report Core Viewpoints - The silicon market is experiencing a situation of weak supply and demand, with high inventory pressure in the industry. There is no expectation of a price reversal, and silicon prices are expected to remain under pressure at low levels in the short term. However, considering that current silicon prices are already at an absolute low, the subsequent downward space may be relatively limited [1]. - The fundamentals of the polysilicon market are weak, with lower transaction prices. Given the high uncertainty of terminal installations and the short - term difficulty in resolving over - capacity issues, polysilicon prices are not expected to show an upward trend in the short term, and the strategy is mainly to short on rebounds [1]. Summary by Related Catalogs Industrial Silicon and Polysilicon Price Trends - Industrial silicon: The average price of non - oxygenated 553 (East China) remained flat at 8,100 yuan/ton, and the average price of 421 (East China) remained flat at 8,700 yuan/ton. The closing price of the futures main contract decreased by 0.80% to 7,415 yuan/ton. The price of N - type polysilicon material remained flat, and the closing price of the futures main contract decreased by 0.44% to 33,955 yuan/ton [1]. - Polysilicon: N - type dense material remained flat at 35.5 yuan/kg, polysilicon re - feed material remained flat at 33.5 yuan/kg, polysilicon dense material remained flat at 32 yuan/kg, and polysilicon cauliflower material remained flat at 30 yuan/kg [1]. Industry News - Dacheng New Energy's Anji Intelligent Manufacturing Base project is expected to be completed and put into operation. The project plans to build 4.8GW of high - efficiency heterojunction batteries and 7.2GW of battery component fully automatic intelligent production lines, with a total investment of 4.7 billion yuan [1]. - LONGi Green Energy expects the production cost of HPBC2.0 components to be similar to that of TOPCon by the end of 2025 and will form a production capacity of 50GW of HPBC2.0 batteries and components by the end of the year [1]. Investment Strategies Industrial Silicon - Supply side: Some silicon enterprises in the north have reduced production due to cost - price inversion. In the southwest production area, although the flood season is approaching, there is a lack of confidence in the future market, resulting in weak willingness to resume production. Overall, the start - up rate has decreased [1]. - Demand side: Polysilicon enterprises continue to reduce production, and the resumption of production may be postponed. The organic silicon industry has a strong willingness to reduce production to support prices, but demand is weak. Silicon - aluminum alloy enterprises purchase as needed, and the downstream has insufficient willingness to stock up at low levels [1]. - Overall: The silicon market has weak supply and demand, high inventory pressure, and no expectation of price reversal. Silicon prices are expected to remain under pressure at low levels in the short term, and the downward space may be limited. Continued attention should be paid to the production dynamics of silicon enterprises [1]. Polysilicon - Supply side: Silicon material enterprises continue to reduce production, and some may have new production capacity put into operation. It is expected that the output will remain within 100,000 tons [1]. - Demand side: The photovoltaic market is weak, with rising inventories of silicon wafers and silicon materials, and falling prices of silicon wafers, battery cells, and components. Market demand has slowed down, and market transactions are weak [1]. - Overall: The fundamentals are weak, and polysilicon transaction prices are lower. There is no expectation of an upward price trend in the short term, and the strategy is mainly to short on rebounds. Continued attention should be paid to changes on the supply side [1].