1. Report Industry Investment Rating No information provided in the report. 2. Core Viewpoints of the Report - **Market Performance**: From October 31 to November 7, 2025, the spot price of industrial silicon fluctuated upward, with the benchmark product at 9,092 yuan/ton on November 7, almost unchanged from 9,087 yuan/ton on October 31. In the futures market, the main contract of industrial silicon rose, with the latest transaction price at 9,220 yuan/ton, a weekly increase of 1.32%. The open interest of the main contract was about 268,300 lots [6]. - **Supply**: After the end of the wet - season, most manufacturers in the southwest main production areas reduced or halted production, leading to a significant decline in output. The operating rate in the northwest decreased slightly, and overall market supply decreased compared to the previous week [6]. - **Demand**: The polysilicon market is in a game between "weak reality" and "strong expectation". High inventory and weak demand suppress the spot price, and leading enterprises cut production in November, reducing the demand for industrial silicon. The organic silicon DMC plants in Jiangxi and Yunnan have gradually resumed operation, increasing the demand for industrial silicon. The output of aluminum rods decreased this week, and the capacity utilization rate rebounded, with demand for industrial silicon remaining relatively stable. Export demand decreased in September [6]. - **Cost, Profit and Inventory**: The production cost of industrial silicon increased this week due to a slight increase in petroleum coke prices, and the prices of silica and electrodes in the southwest were basically stable. The electricity price in the southwest will rise next week, further increasing production costs. The profit of industrial silicon decreased slightly due to increased costs. The industry inventory is at a relatively high level, and with most southwest manufacturers halting production and low market prices, manufacturers are not willing to sell, resulting in little change in inventory. As of November 6, the inventory in the industrial silicon futures delivery warehouse was about 231,000 tons [6]. - **Outlook**: Although the operating rate of industrial silicon has decreased, due to the previous increase in the northwest, buyers' purchasing mentality is not active, and most purchase on - demand. It is expected that the short - term market price of industrial silicon will fluctuate slightly [6]. - **Strategy**: Consider going long on si2601 at low prices, with an expected operating range of 8,500 - 10,500 yuan/ton; or sell out - of - the - money call options; or adopt a reverse arbitrage strategy between industrial silicon and polysilicon [6]. 3. Summary by Directory 3.1 Week - to - Week Views and Hot News - **Week - to - Week Views**: Analyzed market performance, supply, demand, cost, profit, inventory, and provided outlook and trading strategies as mentioned above [6]. - **Hot News**: A polysilicon restructuring "consortium" platform is being planned, with a proposed fund of about 70 billion yuan, to be acquired in a "debt - assumption" way. TBEA denied the rumor of its polysilicon capacity being acquired. Relevant policies on new - energy power consumption and the electronic information manufacturing industry's growth plan were introduced [7]. 3.2 Industry Pattern - **Industrial Chain**: The industrial silicon industry chain includes raw materials such as petroleum coke, charcoal, etc., and downstream products such as organic silicon, polysilicon, and aluminum alloys, which are widely used in electronics, construction, and other fields [11]. 3.3 Futures and Spot Markets - **Spot Price and Basis**: Provided price trends and basis data of different grades and regions of industrial silicon, including 553 and 421 grades in various ports and regions [13][24]. - **Futures Contracts**: Showed the closing and settlement prices of continuous and active contracts of industrial silicon [33]. 3.4 Inventory - Presented the inventory data of the industrial silicon industry, including factory inventory, market inventory, and futures inventory [47]. 3.5 Cost and Profit - **Profit and Cost**: Displayed the comprehensive profit and cost of industrial silicon [55]. - **Electricity Price**: Showed the electricity prices in main and non - main production areas [62][76]. - **Other Raw Materials**: Presented the prices of silica, petroleum coke, electrodes, and silicon coal [90][95]. 3.6 Supply - **Output**: Showed the weekly and monthly output, operating rate, and monthly capacity of industrial silicon. There are also plans for new production capacity in multiple regions, with a total of 1.88 million tons of new capacity planned [108][115]. 3.7 Demand - **Consumption Overview**: Analyzed the consumption structure and quantity of industrial silicon in different fields such as alloys, polysilicon, etc. [118]. - **Polysilicon**: Showed the production, price, inventory, and cost of polysilicon [124][129]. - **Organic Silicon**: Presented the price, production, cost, and profit of organic silicon [132][137]. - **Aluminum Rods**: Showed the production, inventory, and price of aluminum rods, as well as the operating rate and production of aluminum alloys [142][149]. - **Solar/PV**: Displayed the cumulative production and price of solar cells [164]. 3.8 Import and Export - **Industrial Silicon**: Showed the import and export volume of industrial silicon [173]. - **Polysilicon**: Presented the import and export volume of polysilicon [178].

Group 1 - The core viewpoint of the news highlights a significant rally in Hong Kong's photovoltaic solar stocks, driven by the anticipation of a restructuring "joint platform" for polysilicon companies, with a proposed fund size of around 70 billion yuan [1] - Major solar companies such as GCL-Poly Energy and Xinyi Solar have seen substantial stock price increases, with GCL-Poly rising by 7.25% and Xinyi Solar by 6.78% [2] - The restructuring initiative involves 17 leading companies agreeing to form a consortium, with plans to complete the process by 2025 [1][2] Group 2 - The stock performance of key companies includes GCL-Poly Energy with a market cap of 45.155 billion yuan and a year-to-date increase of 37.04%, and Xinyi Solar with a market cap of 36.039 billion yuan and a year-to-date increase of 27.18% [2] - Other notable performers include LONGi Green Energy and Sunshine Energy, both showing significant gains of over 5% [1][2] - The restructuring is expected to leverage 10 billion yuan to facilitate a 70 billion yuan acquisition through a debt-based approach [1]

Group 1: Hot News - A major integration may be coming to the polysilicon industry. A "consortium" platform for polysilicon restructuring is being planned, with a fund of around 70 billion yuan expected to be established and a "debt - assumption" acquisition method using tens of billions to leverage 70 billion yuan under discussion [2] - Indonesia, the world's largest nickel producer, has stopped approving applications for nickel ore processing plants producing certain intermediate products to increase production value - added and solve the oversupply problem. Indonesia accounts for about 60% of global nickel production [2] - The US Geological Survey included copper in its 2025 critical minerals list for the first time, marking the most significant adjustment since 2018. Uranium, silver, metallurgical coal, potash, rhenium, silicon, and lead were also added [2] - As of the week ending November 6, the production and apparent demand of rebar decreased, while the factory and social inventories declined for four consecutive weeks. Rebar social inventory was 4.257 million tons, a decrease of 51,100 tons or 1.19% from the previous week; rebar apparent demand was 2.1852 million tons, a decrease of 136,600 tons or 5.88% [2] - ANEC predicts that Brazil's soybean exports in November are expected to reach 3.77 million tons, higher than 2.34 million tons in the same period last year; soybean meal exports are expected to be 2.23 million tons, higher than 1.73 million tons last year; and corn exports are expected to be 5.57 million tons, higher than 4.92 million tons last year [2] Group 2: Sector Performance - Key sectors to watch include urea, lithium carbonate, fuel oil, asphalt, and crude oil [3] - Night - session performance shows that the non - metallic building materials sector rose 3.13%, the precious metals sector rose 28.31%, the oilseeds and oils sector rose 9.66%, the non - ferrous and soft commodities sector rose 2.80% and had an increase in position ratio of 23.07%, the coal, coke, steel, and ore sector rose 13.56%, the energy sector rose 2.88%, the chemical sector rose 11.40%, the grain sector rose 1.21%, and the agricultural and sideline products sector rose 3.97% [3] Group 3: Sector Positions - The chart shows the changes in commodity futures sector positions in the past five days for various sectors including agricultural and sideline products, grains, chemicals, energy, coal, coke, steel, and ore, non - ferrous metals, etc. [4] Group 4: Performance of Major Asset Classes - In the equity category, the Shanghai Composite Index rose 0.97% daily, 1.34% monthly, and 19.57% year - to - date; the SSE 50 rose 1.22% daily, - 0.12% monthly, and 13.41% year - to - date; the CSI 300 rose 1.43% daily, - 0.29% monthly, and 19.28% year - to - date; the CSI 500 rose 1.61% daily, - 1.39% monthly, and 28.29% year - to - date; the S&P 500 fell 1.12% daily, - 0.64% monthly, and rose 14.26% year - to - date; the Hang Seng Index rose 2.12% daily, 0.11% monthly, and 32.03% year - to - date; the German DAX fell 1.29% daily, rose 0.38% monthly, and 19.24% year - to - date; the Nikkei 225 rose 1.34% daily, - 4.20% monthly, and 27.55% year - to - date; the UK FTSE 100 fell 0.42% daily, rose 0.62% monthly, and 19.12% year - to - date [5] - In the fixed - income category, the 10 - year Treasury bond futures fell 0.09% daily, - 0.13% monthly, and - 0.36% year - to - date; the 5 - year Treasury bond futures fell 0.03% daily, - 0.09% monthly, and - 0.54% year - to - date; the 2 - year Treasury bond futures rose 0.01% daily, - 0.05% monthly, and - 0.46% year - to - date [5] - In the commodity category, the CRB commodity index was flat daily, - 0.09% monthly, and rose 1.87% year - to - date; WTI crude oil fell 0.17% daily, - 2.09% monthly, and - 17.27% year - to - date; London spot gold fell 0.07% daily, - 0.57% monthly, and rose 51.55% year - to - date; LME copper was flat daily, - 2.23% monthly, and rose 22.22% year - to - date; the Wind commodity index rose 0.58% daily, - 2.67% monthly, and 27.89% year - to - date [5] - In other categories, the US dollar index fell 0.46% daily, rose 0.43% monthly, and - 8.10% year - to - date; the CBOE volatility index was flat daily, rose 8.94% monthly, and 3.80% year - to - date [5]

Market Performance - The Shanghai Composite Index rose by 0.97% to 4007.76 points, with a total turnover of 930.3 billion yuan, while the Shenzhen Component Index increased by 1.73% to 13452.42 points, with a turnover of 1125 billion yuan [3] - The ChiNext Index saw a rise of 1.84%, closing at 3224.62 points [3] - The overall market saw over 2800 stocks increase, with a total trading volume exceeding 2 trillion yuan [1][2] Sector Highlights - The AI-related sectors, including computing power, transportation capacity, storage capacity, and electricity, experienced significant gains, driving technology stocks higher [1] - The semiconductor sector was particularly strong, with leading companies like Haiguang Information and Cambrian Technology seeing substantial increases, contributing to a more than 3% rise in the Sci-Tech Innovation 50 Index [1] - The phosphorus chemical sector also performed well, with companies like Qingshuiyuan and Chengxing Co. hitting the daily limit, supported by a 21.42% year-on-year increase in net profit for the sector in the first three quarters, totaling 3.005 billion yuan [2] Investment Trends - Main funds focused on semiconductor, components, and automotive parts sectors, with notable net inflows into stocks like Shenghong Technology and Haiguang Information [4] - Analysts suggest that while there are doubts about the sustainability of the AI boom, the long-term growth trajectory for technology remains a key area for investment [2][10] Industry Developments - A significant restructuring plan for polysilicon companies is in discussion, aiming to establish a fund of approximately 70 billion yuan to facilitate acquisitions [5] - The global first industrial 5G international standard has been officially released, marking a significant advancement in the integration of 5G technology in industrial applications [7]