Report Summary 1. Report Industry Investment Rating No information provided on the industry investment rating. 2. Core Viewpoints - The fundamental situation of industrial silicon remains weak, and for polysilicon, as it approaches the delivery month, attention should be paid to market capital trends [1]. - The trend strength of industrial silicon is -1, indicating a bearish outlook, while the trend strength of polysilicon is 0, showing a neutral stance [3]. 3. Summary by Relevant Catalogs 3.1 Fundamental Tracking - **Futures Market**: For industrial silicon futures Si2507, the closing price was 7,915 yuan/ton, with a decrease of 230 yuan/ton compared to T - 5 and 805 yuan/ton compared to T - 22. The trading volume was 284,155 lots, and the open interest was 178,384 lots. For polysilicon futures PS2507, the closing price was 36,090 yuan/ton, with a decrease of 760 yuan/ton compared to T - 5 [1]. - **Basis**: The spot premium of industrial silicon (against East China Si5530) was +765 yuan/ton, and the spot premium of polysilicon (against N - type recycled feedstock) was -695 yuan/ton [1]. - **Prices**: The price of East China oxygen - blown Si5530 was 8,650 yuan/ton, and the price of Yunnan Si4210 was 10,200 yuan/ton. The price of polysilicon - N - type recycled feedstock was 36,500 yuan/ton [1]. - **Profits**: The profit of silicon plants (Xinjiang new standard 553) was -3,482 yuan/ton, and the profit of polysilicon enterprises was -5.3 yuan/kg [1]. - **Inventory**: The social inventory of industrial silicon (including warehouse receipt inventory) was 58.2 tons, and the manufacturer's inventory of polysilicon was 26.0 tons [1]. - **Raw Material Costs**: The price of silicon ore in Xinjiang was 420 yuan/ton, and the price of graphite electrodes was 11,800 yuan/ton [1]. 3.2 Macro and Industry News On May 21st, Wacker Chemie, a German chemical company, announced the official completion of the expansion project of special silicone at its Zhangjiagang production base. The new production line will gradually be put into use in the next few months to meet the growing demand for high - quality special silicone in the Chinese market. Currently, about half of Wacker's Asian sales come from China [1][3].

Industry Overview - Polydimethylsiloxane (PDMS) is a polymer with a main chain of repeating Si-O bonds, widely used in various fields such as cosmetics, medical devices, industrial lubricants, food processing, and electronic devices [1][2][5] - The production capacity of PDMS in China has increased from 141.5 thousand tons in 2018 to 282.2 thousand tons in 2024, with a compound annual growth rate (CAGR) of 12.23% [7][9] - The domestic PDMS production reached 229.5 thousand tons in 2024, representing a year-on-year growth of 10.02% [7][9] Supply Side - The supply chain for PDMS includes upstream raw material suppliers (silicon powder, chloromethane), midstream PDMS producers (e.g., Xingfa Group, Dongyue Silicon Materials, Hoshine Silicon Industry), and downstream application sectors [5][7] - China has transitioned from being a net importer to a net exporter of PDMS since 2015, although high-end products still rely on imports [9] Consumption Side - PDMS is primarily consumed in the production of silicone rubber, accounting for 70% of total consumption [11][13] - Key application sectors for PDMS include electronics (21.3%), power/new energy (19.1%), construction (14.1%), and textiles (8.9%), with a trend of increasing consumption in electronics and new energy sectors [11][13] Market Dynamics - The market is characterized by high concentration, with the top six companies (CR6) accounting for over 75% of the market share [15] - Hoshine Silicon Industry is the leading company in the PDMS sector, with a production capacity of 62.1 thousand tons and a production volume of 51.1 thousand tons in 2024 [15][17] - Dongyue Silicon Materials follows closely, with a capacity of 28.2 thousand tons and a production volume of 24.9 thousand tons [15][19] Development Trends 1. The industry is expected to continue expanding capacity, with a need to achieve a dynamic balance between supply and demand [21] 2. Diversification of downstream applications and consumption upgrades will drive industry growth, particularly in high-performance silicone products [22] 3. Technological innovation and green development will lead the industry's transformation, focusing on high-end product development and environmentally friendly production methods [23]

Report Industry Investment Rating No relevant content provided. Core Viewpoints - For industrial silicon, the cost support is weakening, the supply side has复产 expectations, the consumption side is average, and the fundamentals remain weak [3]. - For polysilicon, the consumption side shows signs of weakening, the supply side has news of joint production cuts but it is difficult to achieve in the short term, and there is still some game in the market [8][14]. Summary by Related Catalogs Industrial Silicon Market Analysis - On May 22, 2025, the industrial silicon futures price was weakly oscillating at a low level. The main contract 2507 opened at 7,840 yuan/ton and closed at 7,880 yuan/ton, a change of (-15) yuan/ton or (-0.19)% from the previous settlement. The position of the main contract 2505 was 183,690 lots at the close, and the total number of warehouse receipts on May 23, 2025, was 65,298 lots, a change of -355 lots from the previous day [1]. Supply Side - The spot price of industrial silicon has declined. The price of East China oxygenated 553 silicon is 8,500 - 8,800 (-50) yuan/ton; 421 silicon is 9,300 - 9,700 (-100) yuan/ton. The price of Xinjiang oxygenated 553 silicon is 8,000 - 8,100 (-50) yuan/ton, and the price of 99 silicon is 8,000 - 8,100 (-50) yuan/ton. Since May, the price of electrode raw materials has been declining, with a decrease of about 700 - 1,000 yuan/ton [2]. Consumption Side - The quoted price of organic silicon DMC is 11,300 - 11,600 (0) yuan/ton. The average price this week remained stable compared to last week. The domestic DMC market's trading center has moved up slightly, and the downstream enterprises'开工 rate has increased. The monomer enterprises' DMC shipments have improved compared to last week [3]. Strategy - Unilateral: Mainly conduct range operations, and upstream enterprises should sell hedging at high prices. - Inter - delivery, cross - variety, spot - futures, and options: None [4]. Polysilicon Market Analysis - On May 22, 2025, the main contract 2507 of polysilicon futures rebounded, opening at 35,600 yuan/ton and closing at 36,080 yuan/ton, with a closing price change of 1.14% from the previous trading day. The position of the main contract reached 77,294 (73,488 the previous trading day) lots, and the trading volume on that day was 126,262 lots. The spot price of polysilicon remained stable. The polysilicon manufacturers' inventory decreased, while the silicon wafer inventory increased. The polysilicon weekly output was 21,500.00 tons, a change of 0.40% month - on - month, and the silicon wafer output was 13.30GW, a change of 7.10% month - on - month [5][12][13]. Strategy - Unilateral: The short - term futures price is expected to operate in a wide - range oscillation, mainly conduct range operations. - Inter - delivery, cross - variety, spot - futures, and options: None [9][15].

Industry Overview - The organic silicon industry in China is currently in a rapid expansion phase, driven by demand from strategic emerging industries such as renewable energy, 5G communication, and smart vehicles, with production capacity expected to reach 3.44 million tons and output to grow to 2.253 million tons by 2024, although capacity utilization has slightly decreased to a new low since 2018 due to concentrated expansion [1][10] - The industry is undergoing significant structural adjustments, with expansion concentrated among leading companies like Hoshine Silicon Industry and Dongyue Silicone Materials, forming a coal-electricity-silicon integrated industrial cluster in regions with energy cost advantages such as Xinjiang and Inner Mongolia [1][10] Policy Background - China's organic silicon industry policies focus on technological iteration, green transformation, and industrial chain collaboration, promoting upgrades towards high-end, refined, and low-carbon directions [4] - The policy framework emphasizes technological breakthroughs, particularly in the development of specialty materials such as phenyl monomers and fluorosilicone polymers, and encourages the application of innovations in cutting-edge fields like aerospace and semiconductor packaging [4] Industry Chain - The upstream of the organic silicon industry relies on metallic silicon and methyl chloride as core raw materials, with metallic silicon forming a large-scale supply system in energy-rich areas, while methyl chloride's self-sufficiency is enhanced through recycling processes [6] - The midstream focuses on the synthesis and deep processing of organic silicon monomers, with a product matrix dominated by silicone rubber, silicone oil, and silicone resin, catering to various industrial needs [6] Competitive Landscape - The organic silicon industry in China exhibits a highly concentrated competitive landscape, with leading companies leveraging technological advantages and scale effects to dominate the market, resulting in a tiered structure [14] - As of 2024, there are 13 major organic silicon monomer production companies, with Hoshine Silicon Industry, Dongyue Silicone Materials, and Jiangxi Xinghuo being the largest in terms of production capacity [14] Development Trends - The organic silicon industry is accelerating its transition towards green and low-carbon practices, with companies innovating production processes to reduce energy consumption and pollution [16] - The focus is shifting from traditional sectors like construction and textiles to high-end fields such as renewable energy, electronic communication, and healthcare, with increasing demand for high-performance organic silicon materials in applications like photovoltaic module encapsulation and thermal management for electric vehicle batteries [16]

Report Summary 1. Report Industry Investment Rating No investment rating information is provided in the report. 2. Core Viewpoints - For industrial silicon, the spot price is continuously hitting new lows, with an expected increase in supply, no bright spots on the consumption side, and significant inventory and warehouse receipt pressure. The price is approaching historical lows, and most enterprises face high cost pressure. Attention should be paid to the changes in upstream production after continuous price declines and the impact of relevant industry policies [2][3]. - For polysilicon, the spot price is weak, recent trading volume is low, and the futures market shows wide - range fluctuations. The acceleration of warehouse receipt registration requires attention to its impact on the market [5][7]. 3. Summary by Directory Industrial Silicon - **Market Analysis** - On May 21, 2025, the industrial silicon futures price continued to reach new lows. The main contract 2507 opened at 7,980 yuan/ton and closed at 7,865 yuan/ton, a change of - 140 yuan/ton (-1.75%) from the previous settlement. The position of the main contract 2505 was 192,802 lots at the close, and the total number of warehouse receipts on May 21 was 65,653 lots, a decrease of 596 lots from the previous day [2]. - The spot price of industrial silicon remained stable. The price of East China oxygen - passing 553 silicon was 8,600 - 8,800 (-100) yuan/ton; 421 silicon was 9,400 - 9,800 (-100) yuan/ton. The price of Xinjiang oxygen - passing 553 silicon was 8,000 - 8,200 (0) yuan/ton, and 99 silicon was 8,000 - 8,200 (0) yuan/ton. Some silicon prices in Kunming, Huangpu Port, Tianjin, Sichuan, Shanghai, and the northwest region continued to decline, while the silicon price in Xinjiang remained stable, and the price of 97 silicon also remained stable [2]. - The organic silicon DMC was quoted at 11,300 - 11,600 (0) yuan/ton. In the organic silicon market, the prices of raw rubber and D4 showed mixed trends. With the arrival of the recent trading window period, the downstream demand for raw rubber increased rapidly, and the trading was good. However, due to the weak demand for room - temperature rubber, the overall trading of D4 was average [2]. - **Strategy** - Given the current situation, attention should be paid to the changes in upstream production after continuous price declines and the impact of relevant industry policies [3]. Polysilicon - **Market Analysis** - On May 21, 2025, the main contract 2507 of polysilicon futures fluctuated widely, opening at 35,630 yuan/ton and closing at 35,860 yuan/ton, a 0.93% change from the previous trading day. The position of the main contract reached 73,488 (70,536 in the previous trading day) lots, and the trading volume was 157,225 lots [5]. - The spot price of polysilicon remained stable. The re - feeding material was quoted at 32.00 - 35.00 (-0.50) yuan/kg; dense material was 30.00 - 34.00 (-1.00) yuan/kg; cauliflower material was 29.00 - 31.00 (-1.00) yuan/kg; granular silicon was 32.00 - 33.00 (-0.50) yuan/kg, N - type material was 35.00 - 38.00 (-1.00) yuan/kg, and N - type granular silicon was 33.00 - 35.00 (0.00) yuan/kg. The inventory of polysilicon manufacturers decreased, while the inventory of silicon wafers increased. The latest polysilicon inventory was 25.00 (a month - on - month change of - 2.27%), the silicon wafer inventory was 19.44GW (a month - on - month increase of 7.22%), the weekly polysilicon output was 21,400.00 tons (a month - on - month change of 0.00%), and the silicon wafer output was 12.42GW (a month - on - month increase of 0.50%) [5]. - The prices of silicon wafers, battery cells, and components remained stable. For example, the domestic N - type 18Xmm silicon wafer was 0.94 (0.00) yuan/piece, and the efficient PERC182 battery cell was 0.29 (0.00) yuan/W [5][7]. - The registration of warehouse receipts has accelerated recently, with 310 new lots added on that day, and the total warehouse receipts reached 450 lots [7]. - **Strategy** - For single - side trading, use range - bound operations, and upstream enterprises should sell hedging when the price is high. There are no strategies for inter - period, cross - variety, spot - futures, and options trading [6][7].

Core Viewpoint - The chemical industry is currently at the bottom of its cycle, with prices and spreads still stabilizing, while demand is expected to improve with government policies aimed at economic recovery [1] Group 1: Industry Overview - The chemical industry is experiencing a bottoming phase, with most chemical prices and spreads still in a stabilization process [1] - Domestic capacity is gradually being released, leading to a significant slowdown in supply growth [1] - The report suggests focusing on sectors with relatively certain demand, such as agricultural chemicals and the civil explosives industry benefiting from western development [1] Group 2: Key Recommendations - Emphasis on long-term value of leading companies in the chemical sector, as core assets are expected to see profit and valuation recovery [1] - Recommended leading companies include Wanhua Chemical, Hualu Hengsheng, Huafeng Chemical, Longbai Group, Yangnong Chemical, New Hecheng, Satellite Chemical, Baofeng Energy, Hengli Petrochemical, and Rongsheng Petrochemical [1] Group 3: Subsector Insights - Agricultural chemicals show rigid demand, with steady growth in grain planting area and recovery in compound fertilizer volume and profit [2] - The civil explosives industry is driven by domestic demand, particularly in regions like Xinjiang and Tibet, with increasing concentration benefiting leading companies [2] Group 4: New Material Opportunities - The domestic replacement of chemical new materials is accelerating due to trade tariffs and anti-monopoly pressures [3] - Key areas include adsorption separation materials, lubricating oil components, OLED materials, and high-end photoresists, with specific companies recommended for investment [3] Group 5: Price Recovery Potential - Certain sectors may see profit improvements as supply growth slows and policy constraints are anticipated, particularly in organic silicon and spandex industries [4] - The petrochemical sector may present strategic opportunities following a potential bottoming of oil prices, with recommendations for strategic layouts in refining and downstream polyester filament industries [4]

Report Summary 1. Industry Investment Rating No information provided regarding the industry investment rating. 2. Core Views - The cost support has weakened due to the decline in raw materials and electricity prices during the wet season in the southwest region. There are no bright spots on the consumer side, and high industry inventories are suppressing prices. Attention should be paid to the resumption of production in the southwest and the impact of macro - sentiment [2]. - In the short term, actual spot transactions are extremely rare. Downstream enterprises are mainly consuming inventory. Near - month contracts are still trading based on delivery games, while far - month contracts are trading on weak reality and weak expectations [6]. 3. Summary by Related Content Industrial Silicon - **Market Analysis** - On May 19, 2025, the industrial silicon futures price continued to bottom out. The main contract 2507 opened at 8150 yuan/ton and closed at 8130 yuan/ton, a change of (-155) yuan/ton or (-1.87)% from the previous day's settlement. The position of the main contract 2507 was 155,038 lots, and the total number of warehouse receipts was 66,384 lots, a change of - 49 lots from the previous day [1]. - The spot price of industrial silicon declined. The price of oxygen - blown 553 silicon in East China was 8800 - 9100 (-150) yuan/ton; 421 silicon was 9600 - 10100 (-150) yuan/ton. The price of oxygen - blown 553 silicon in Xinjiang was 8100 - 8300 (-100) yuan/ton, and 99 silicon was 8100 - 8300 (-100) yuan/ton. Some silicon prices in Kunming, Huangpu Port, Tianjin, Xinjiang, Sichuan, Shanghai, and the northwest region also continued to decline. The price of 97 silicon also declined [1]. - According to SMM statistics, the quotation of organic silicon DMC was 11300 - 11600 (0) yuan/ton. It is reported that the market trading volume is expected to recover faster in mid - to late May, and the low - level inventory reduction of monomer enterprises has been effective recently. Although the operation of monomer enterprises in North and Southwest China has recovered, those in the Northwest are still in the maintenance period [1]. - **Strategy** - For single - side trading, focus on range operations, and upstream enterprises should sell hedging at high prices. There are no strategies for inter - period, cross - variety, spot - futures, and options trading [3]. Polysilicon - **Market Analysis** - On May 19, 2025, the main contract 2506 of polysilicon futures fluctuated. It opened at 36,900 yuan/ton and closed at 37,150 yuan/ton, a change of 0.51% from the previous trading day. The position of the main contract reached 28,688 (32,702 the previous day) lots, and the trading volume was 72,986 lots [4]. - The spot price of polysilicon remained stable. The quotation of polysilicon re - feedstock was 34.00 - 36.00 (0.00) yuan/kg; dense polysilicon was 33.00 - 35.00 (0.00) yuan/kg; cauliflower - shaped polysilicon was 30.00 - 32.00 (0.00) yuan/kg; granular silicon was 33.00 - 34.00 (0.00) yuan/kg, N - type silicon was 37.00 - 39.00 (-0.75) yuan/kg, and N - type granular silicon was 34.00 - 36.00 (0.00) yuan/kg. The inventory of polysilicon manufacturers decreased, while the inventory of silicon wafers increased month - on - month. The latest statistics show that the polysilicon inventory was 25.00 tons, a month - on - month change of - 2.27%, the silicon wafer inventory was 19.44GW, a month - on - month change of 7.22%, the weekly polysilicon output was 21,400.00 tons, with a month - on - month change of 0.00%, and the silicon wafer output was 12.42GW, a month - on - month change of 0.50% [4]. - **Strategy** - For single - side trading, focus on range operations. There are no strategies for inter - period, cross - variety, spot - futures, and options trading [7]. Silicon Wafers, Battery Cells, and Components - **Silicon Wafers** - The price of domestic N - type 18Xmm silicon wafers was 0.94 (0.00) yuan/piece, N - type 210mm was 1.28 (-0.02) yuan/piece, and N - type 210R silicon wafers were 1.08 (-0.02) yuan/piece [6]. - **Battery Cells** - The price of high - efficiency PERC182 battery cells was 0.29 (0.00) yuan/W; PERC210 battery cells were about 0.28 (0.00) yuan/W; Topcon M10 battery cells were about 0.26 (0.00) yuan/W; Topcon G12 battery cells were 0.28 (0.00) yuan/W; Topcon 210RN battery cells were 0.26 (0.00) yuan/W; and HJT210 half - cell batteries were 0.37 (0.00) yuan/W [6]. - **Components** - The mainstream transaction price of PERC182mm was 0.67 - 0.74 (0.00) yuan/W, PERC210mm was 0.69 - 0.73 (0.00) yuan/W, N - type 182mm was 0.69 - 0.69 (0.00) yuan/W, and N - type 210mm was 0.69 - 0.70 (0.00) yuan/W [6]. Factors to Watch - Resumption of production in the southwest and changes in the operation in the northwest [2][5]. - Changes in the operation of polysilicon enterprises [5]. - Policy disturbances [5]. - Macro and capital sentiment [2][5]. - Operation of organic silicon enterprises [5]. - Impact of industry self - discipline on upstream and downstream operations [7]. - Impact of futures listing on the spot market [7].

Core Viewpoint - The chemical sector in China is maintaining its development momentum despite external challenges, supported by strong domestic demand and favorable policies, with a notable recovery in product demand driven by various industries [1][6]. Group 1: Industry Performance - In Q1, the chemical sector's 529 listed companies reported a total revenue of 621.73 billion yuan, a year-on-year decline of 15.33%, while net profit reached 36.208 billion yuan, showing a slight increase of 1.58% [1]. - The refrigerant industry benefited from regulatory policies, leading to a revenue increase of 23.31% to 14.654 billion yuan and a net profit surge of 140.16% to 1.77 billion yuan [2]. - The chlor-alkali industry saw a net profit increase of 84.55% to 3.117 billion yuan, despite a revenue decline of 13.98% to 45.922 billion yuan [2]. - The food and feed additive sector achieved a revenue of 37.773 billion yuan, up 4.21%, with net profit rising 75.57% to 5.369 billion yuan [3]. - The agricultural chemical sector reported a revenue of 49.378 billion yuan, down 6.51%, but net profit increased by 25.12% to 3.093 billion yuan [3]. Group 2: Industry Challenges - The organic silicon industry faced significant challenges, with net profit dropping by 37.74% despite stable revenue [4]. - The titanium dioxide sector experienced a revenue decline of 14.35% and a net profit drop of 35.61% due to high production levels and weak downstream demand [4]. - The nitrogen fertilizer industry reported a revenue decrease of 4.28% and a significant net profit decline of 56.82% [4]. - The tire industry showed a revenue increase of 6.34% but faced a net profit decline of 24.84%, attributed to rising production costs [4][5]. Group 3: Future Outlook - The refrigerant industry is expected to maintain its growth cycle due to quota systems and increasing downstream demand [6]. - The agricultural chemical market is anticipated to stabilize as the peak usage season approaches, with active trading expected [6]. - The chemical industry must navigate challenges such as increased competition in the titanium dioxide market and the need for innovation in the daily chemical sector [6].

化工子行业年报和 1 季报深度梳理 - 有机硅 20250515 摘要 • 2024 年有机硅需求量增长 22%，达 181.7 万吨，但生产端增速更快。 2025 年一季度需求增速追平生产增速，需求量达 51.3 万吨，同比增长 22.3%。 • 2024 年 DMC 进口量同比增长 6%至 10.9 万吨，2025 年一季度同比下 降 9.8%至 2.4 万吨；2024 年出口量同比增长 34.2%至 54.6 万吨， 2025 年一季度同比增长 10%至 13.5 万吨。 • 2024 年是有机硅产能投放大年，供给压力大。目前新增产能投放接近尾 声，预计供需关系将逐渐改善。板块 24 年度营业总收入 460.5 亿元，同 比增加 3%，净利润 29.7 亿元，同比减少 24%。 • 2024 年度固定资产投资显著增长，同比增加 40%以上至 417 亿元，在建 工程项目同比减少 10%至 341 亿。行业资产负债率持续上升，24 年度提 升至 55%。 • 一季度有机硅产品价格震荡后回落，华东商家价格跌至 12,000 元/吨，盈 利承压。龙头企业如和盛、新发、东岳等韧性较强，通过原料自供、业务 多样化 ...

Industry Investment Rating - Industrial silicon: Volatility / Polysilicon: Volatility [1] Core Viewpoints - Industrial silicon prices continue to decline, with some small factories planning further production cuts, but partial resumption in Sichuan and potential resumption of large Xinjiang factories. Demand remains weak, and future spot prices are not optimistic [1][9]. - Polysilicon prices first rose and then fell. After the production - cut meeting, no clear plan was given. The market is trading based on reality. The company has lowered the production schedule for May and June, and polysilicon is expected to reduce inventory [1][11]. - For investment, it is not recommended to go long on industrial silicon on the left - hand side, and consider short - selling on rebounds. For polysilicon, an arbitrage strategy is recommended, focusing on positive spread opportunities after the correction of PS2506 - PS2507/PS2507 - PS2508 [2][14][15]. Summary by Directory 1. Industrial Silicon/Polysilicon Industry Chain Prices - This week, the Si2507 contract of industrial silicon decreased by 95 yuan/ton to 8145 yuan/ton. SMM spot prices of East China oxygen - blowing 553 and Xinjiang 99 silicon also declined. The PS2506 contract of polysilicon decreased by 980 yuan/ton to 36850 yuan/ton, and the N - type re - feeding material transaction price also dropped [7][8]. 2. Industrial Silicon May Partially Resume Production, Polysilicon Focus on Positive Spread Opportunities Industrial Silicon - This week, industrial silicon futures rebounded and then fell. Zhou production was 6.92 tons, a decrease of 3.94%. Social inventory increased by 0.3 tons, and sample factory inventory decreased by 1.73 tons. Demand is weak, and future prices are not optimistic [9]. Organic Silicon - This week, organic silicon prices declined slightly. The overall enterprise start - up rate was about 58.95%, an increase of 3.17pct. Zhou production was 3.90 tons, an increase of 3.17%, and inventory was 4.69 tons, a decrease of 5.06%. Short - term prices may rebound slightly, but the long - term supply surplus problem remains [9][10]. Polysilicon - This week, polysilicon futures prices first rose and then fell. The company has lowered the production schedule for May to about 9.3 tons and for June to 9 tons. Polysilicon is expected to reduce inventory in May and June. The average spot selling price has fallen below the cash cost line, and the production - cut action is still being negotiated [11]. Silicon Wafers - This week, silicon wafer prices continued to fall. As of May 15th, factory inventory was 19.44GW, an increase of 1.31GW. The price is expected to fluctuate at a low level [12]. Battery Cells - This week, battery cell prices continued to fall. In May, the production schedule was 58 - 59GW. Inventory has accumulated, and prices are expected to fluctuate at a low level [13]. Components - This week, component prices continued to fall. In May, the production schedule was about 54GW, and the expected production schedule for June is 50GW. Prices are expected to fluctuate at a low level in the low - price range [13]. 3. Investment Recommendations - Industrial silicon: Do not recommend going long on the left - hand side, consider short - selling on rebounds, and pay attention to the cash - flow risks of large factories [2][14]. - Polysilicon: Recommend an arbitrage strategy, focus on positive spread opportunities after the correction of PS2506 - PS2507/PS2507 - PS2508, and continue to pay attention to supply - side changes and spot conditions [2][15]. 4. Hot News Compilation - Ruoqiang County's second - phase 100,000 - ton/year industrial silicon compliance capacity project: The industrial silicon indicator of Fuhai County will be transferred to Xinjiang TBEA Loulan New Materials Technology Co., Ltd. for project construction [16]. - Hongyuan Green Energy plans to transfer 27.0737% of the equity of Inner Mongolia Xinyuan for 1.245 billion yuan to optimize resource allocation and focus on core business [16]. - Inner Mongolia Xingfa Technology's 100,000 - ton industrial silicon project is under publicity, with an investment of 1.495 billion yuan [17]. 5. High - Frequency Data Tracking of the Industry Chain - The report provides various data charts for industrial silicon, organic silicon, polysilicon, silicon wafers, battery cells, and components, including price, production, inventory, and profit data [6]