Report Summary Industry Investment Rating No industry investment rating is provided in the report. Core Viewpoints The report presents the fundamental data of industrial silicon and polysilicon, including futures market, basis, price, profit, inventory, and raw material cost, as well as macro and industry news and trend strength [1][2][3]. Detailed Summaries 1. Industrial Silicon and Polysilicon Futures Market - Si2601: The closing price is 8,940 yuan/ton, with a change of -20 compared to T - 1, -140 compared to T - 5, and 235 compared to T - 22. The trading volume is 214,012 lots, and the open interest is 262,676 lots [1]. - PS2601: The closing price is 53,315 yuan/ton, with a change of -45 compared to T - 1. The trading volume is 187,876 lots, and the open interest is 128,427 lots [1]. 2. Basis - Industrial silicon: The spot premium or discount varies depending on the benchmark, such as +560 yuan/ton (against East China Si5530), +10 yuan/ton (against East China Si4210), and -40 yuan/ton (against Xinjiang 99 silicon) [1]. - Polysilicon: The spot premium or discount against N - type re - feed is -1,315 yuan/ton [1]. 3. Price - Industrial silicon: Xinjiang 99 silicon is 8,900 yuan/ton, and Yunnan Si4210 is 10,000 yuan/ton. Polysilicon - N - type re - feed is 52,250 yuan/ton [1]. - Organic silicon: DMC price is 13,200 yuan/ton [1]. - Aluminum alloy: ADC12 price is 21,350 yuan/ton [1]. 4. Profit - Silicon plant: The profit of Xinjiang new - standard 553 is -2,329.5 yuan/ton, and that of Yunnan new - standard 553 is -3,576 yuan/ton [1]. - Polysilicon enterprise: The profit is 7.7 yuan/kg [1]. - DMC enterprise: The profit is 1,322 yuan/ton [1]. - Regenerated aluminum enterprise: The profit is -10 yuan/ton [1]. 5. Inventory - Industrial silicon: Social inventory is 54.8 million tons, enterprise inventory is 17.8 million tons, industry inventory is 72.6 million tons, and futures warehouse receipt inventory is 20.8 million tons [1]. - Polysilicon: The manufacturer's inventory is 27.1 million tons [1]. 6. Raw Material Cost - Silicon ore: Xinjiang is 320 yuan/ton, and Yunnan is 290 yuan/ton [1]. - Washed coking coal: Ningxia is 1,200 yuan/ton [1]. - Petroleum coke: Maoming coke is 1,400 yuan/ton, and Yangzi coke is 2,340 yuan/ton [1]. - Electrode: Graphite electrode is 12,450 yuan/ton, and carbon electrode is 7,200 yuan/ton [1]. 7. Macro and Industry News - As of the end of October 2025, the total installed power generation capacity in China is 3.75 billion kilowatts, a year - on - year increase of 17.3%. Among them, the installed capacity of solar power is 1.14 billion kilowatts, a year - on - year increase of 43.8%, and the installed capacity of wind power is 0.59 billion kilowatts, a year - on - year increase of 21.4%. From January to October, the average utilization hours of power generation equipment is 2,619 hours, 260 hours lower than the same period last year. In October, the new installed capacity of solar power is 12.6 million kilowatts, a month - on - month increase of 30.43% [2]. 8. Trend Strength - Industrial silicon: The trend strength is 0. - Polysilicon: The trend strength is 1. The trend strength ranges from -2 (most bearish) to 2 (most bullish) [3].

Group 1: Report Title and Date - The report is titled "Industrial Silicon: Warehouse Receipts Continue to Decline, with Strong Support at the Bottom; Polysilicon: Sentiment is Fluctuating, Monitor This Week's Policy Situation" and is dated October 28, 2025 [1][2] Group 2: Industry Investment Rating - Not provided in the report Group 3: Core Views - The industrial silicon warehouse receipts continue to decline, and the bottom is well - supported; for polysilicon, sentiment is fluctuating, and attention should be paid to this week's policy situation [1][2] Group 4: Fundamental Tracking Industrial Silicon and Polysilicon Futures Market - Si2601 closing price is 8,965 yuan/ton, with a trading volume of 198,198 lots and an open interest of 201,518 lots; PS2601 closing price is 54,500 yuan/ton, with a trading volume of 238,898 lots and an open interest of 105,877 lots [2] Basis - Industrial silicon spot premium (against East China Si5530) is +385 yuan/ton; polysilicon spot premium (against N - type recycled material) is - 2000 yuan/ton [2] Price - The price of Xinjiang 99 - silicon is 8700 yuan/ton; the price of polysilicon - N - type recycled material is 52980 yuan/ton [2] Profit - Silicon factory profit (Xinjiang new standard 553) is - 2304.5 yuan/ton; polysilicon enterprise profit is 8.5 yuan/kg [2] Inventory - Industrial silicon social inventory (including warehouse receipt inventory) is 55.9 million tons; polysilicon factory inventory is 25.8 million tons [2] Raw Material Cost - The price of Xinjiang silicon ore is 320 yuan/ton; the price of Xinjiang washed coking coal is 1475 yuan/ton [2] Organic Silicon - The price of DMC is 11000 yuan/ton, and the DMC enterprise profit is - 910 yuan/ton [2] Aluminum Alloy - The price of ADC12 is 21200 yuan/ton, and the recycled aluminum enterprise profit is 40 yuan/ton [2] Group 5: Macro and Industry News - On October 26, the National Energy Administration released power industry statistics for January - September. In September, the monthly new photovoltaic installation was 9.66GW, a 31.25% month - on - month increase; from January to September, the cumulative new photovoltaic installation was 240.27GW [2] Group 6: Trend Intensity - The trend intensity of industrial silicon is 0, and that of polysilicon is 0, indicating a neutral trend [4]

Report Summary 1. Industry Investment Rating - No industry investment rating is provided in the report. 2. Core Viewpoints - Industrial silicon is in a weak and volatile trend [1]. - Polysilicon's futures market is running strongly, and attention should be paid to the content of today's meeting [2]. 3. Summary by Directory 3.1 Fundamental Tracking - **Futures Market**: - Industrial silicon (Si2511): The closing price is 8,570 yuan/ton, with a decrease of 70 yuan compared to T - 5 and 250 yuan compared to T - 22; the trading volume is 225,068 lots, showing a decreasing trend; the open interest is 142,381 lots, also decreasing [2]. - Polysilicon (PS2511): The closing price is 50,865 yuan/ton, an increase of 875 yuan compared to T - 1; the trading volume is 276,176 lots; the open interest is 80,114 lots [2]. - **Basis**: - Industrial silicon: The spot premium or discount varies according to different benchmarks, such as +830 yuan/ton for East China Si5530 and +330 yuan/ton for East China Si4210 [2]. - Polysilicon: The spot premium for N - type re - investment is +1385 yuan/ton [2]. - **Prices**: - Industrial silicon: The price of Xinjiang 99 silicon is 8,850 yuan/ton, and Yunnan Si4210 is 9,950 yuan/ton [2]. - Polysilicon: The price of N - type re - investment material is 52,750 yuan/ton [2]. - **Profits**: - Industrial silicon: The profit of Xinjiang new standard 553 silicon plant is - 2,699.5 yuan/ton, and that of Yunnan new standard 553 is - 3,638 yuan/ton [2]. - Polysilicon: The profit of polysilicon enterprises is - 14.0 yuan/kg [2]. - **Inventory**: - Industrial silicon: The social inventory (including warehouse receipt inventory) is 54.5 million tons, the enterprise inventory is 16.8 million tons, and the industry inventory is 71.3 million tons [2]. - Polysilicon: The manufacturer's inventory is 24.0 million tons [2]. - **Raw Material Costs**: - Industrial silicon: The prices of raw materials such as silicon ore, washed coal, petroleum coke, and electrodes vary in different regions [2]. - Polysilicon: The prices of related products such as trichlorosilane, silicon powder, silicon wafers, battery cells, components, photovoltaic glass, and photovoltaic - grade EVA are provided [2]. - Organic silicon: The price of DMC is 11,300 yuan/ton, and the enterprise profit is - 830 yuan/ton [2]. - Aluminum alloy: The price of ADC12 is 21,050 yuan/ton, and the profit of recycled aluminum enterprises is 130 yuan/ton [2]. 3.2 Macro and Industry News - On October 15, 2025, the State Grid Xinjiang Electric Power Co., Ltd. announced the results of the competitive bidding for the mechanism electricity price of incremental new energy projects in 2025. The mechanism electricity price for wind power is 0.252 yuan/kWh with a scale of 18,539,219,756 kWh, and for photovoltaic power is 0.235 yuan/kWh with a scale of 3,608,399,178 kWh [2][4]. 3.3 Trend Intensity - The trend intensity of industrial silicon is 0, indicating a neutral trend; the trend intensity of polysilicon is 1, indicating a relatively strong trend [4].

1. Report Industry Investment Rating No relevant information provided. 2. Core Viewpoints of the Report - The industrial silicon market maintains a pattern of strong supply and weak demand, with the short - term expected to trade in the range of 8,300 - 9,000 yuan/ton. Continued attention should be paid to macro - sentiment fluctuations and supply - side start - up conditions [3]. - The polysilicon market is in a state of high - level range - bound trading due to the game between policy - favorable expectations and weak fundamentals. Continued attention should be paid to the implementation of industrial policies and macro - sentiment [3]. 3. Summary According to the Directory 3.1产业链价格回顾 - **Industrial Silicon Futures and Spot Prices**: On October 10, 2025, the closing price of the industrial silicon futures main contract was 8,685 yuan/ton, up 0.52% from September 30. Most spot prices remained unchanged, with only the price of the oxygen - free 553 at Tianjin Port down 0.53% [12]. - **Polysilicon Futures and Spot Prices**: The closing price of the polysilicon futures main contract on October 10, 2025, was 48,965 yuan/ton, down 4.66% from September 30. Spot prices of various polysilicon types remained unchanged [12]. - **Silicon Wafer, Battery Cell, and Component Prices**: Prices of silicon wafers, battery cells, and components were generally stable, with only minor price changes in some products [12]. - **Organic Silicon and Aluminum Alloy Prices**: As of October 10, the average DMC price was 11,050 yuan/ton, unchanged from the previous period; the 107 - rubber average price was 11,500 yuan/ton, up 3.14% from the previous period; the silicone oil average price was 12,850 yuan/ton, unchanged from the previous period. The ADC12 average price was 21,100 yuan/ton, up 0.96% from the previous period; the A356 average price was 21,450 yuan/ton, up 1.42% from the previous period [12]. 3.2开炉增加，供给持续增量 - **Cost and Profit of Industrial Silicon**: Driven by anti - involution sentiment and increased demand, the prices of silicon coal, petroleum coke, and electrodes have rebounded. The power cost in the southwest production area will gradually increase as it transitions from the wet season to the dry season [3]. - **Supply of Industrial Silicon**: In October, Sichuan and Yunnan are transitioning to the dry season, leading to increased costs and production cuts by some enterprises. In contrast, small factories in Gansu and Ningxia have completed raw material stockpiling, and the start - up rate in Xinjiang has increased. Overall, the start - up rate has increased [3]. - **Demand for Industrial Silicon**: The production of polysilicon in October may still have a slight increase, increasing the demand for industrial silicon. However, some organic silicon enterprises have maintenance plans, and the start - up rate has declined. Overall, the demand for industrial silicon remains weak [3]. - **Inventory of Industrial Silicon**: The futures warehouse receipts have fluctuated slightly. After the holiday, downstream enterprises have successively inquired, but some manufacturers' orders have not been delivered, and factory inventories have accumulated [3]. 3.3光伏产业运行平稳，关注终端需求 - **Polysilicon**: In September, the polysilicon output was 130,000 tons, basically the same as in August. The cumulative output from January to September was 941,600 tons, a cumulative year - on - year decrease of 33%. It is expected that the output in October will maintain an incremental trend, with a month - on - month increase of about 3,000 - 5,000 tons. As of October 9, the total polysilicon inventory was 240,000 tons, and the silicon wafer inventory was 16.78 GW. As of October 10, the registered polysilicon warehouse receipts were 8,140 lots [3]. - **Silicon Wafer**: The market was sluggish during the holiday, with little market trading [80]. - **Battery Cell**: The price was stable [87]. - **Component**: The component installation did not meet expectations, and the price was under pressure. The lifting of the component export tax - refund policy is still undetermined. If the policy is implemented, it may stimulate component export demand in the next few months. The pre - implementation inventory rush of India's "double - anti" policy will also support exports to some extent. Domestically, the front - loaded installation in the first half of the year has overdrawn some demand in the second half, resulting in a decrease in domestic tender and bidding projects, lower - than - expected centralized installation, and a decline in distributed trading volume. The component segment is under great pressure, and there is no obvious restocking action for upstream demand [3]. 3.4支撑有限，有机硅价格大稳小动 - **Start - up Rate**: In September, the start - up rate of China's DMC was 71.25%, a month - on - month decrease of 4.38 percentage points. The DMC output was 210,200 tons, a month - on - month decrease of 12,900 tons. Recently, a monomer factory has a maintenance plan, and the start - up rate may decline slightly [108]. - **Price**: As of October 10, the average DMC price was 11,050 yuan/ton, unchanged from the previous period; the 107 - rubber average price was 11,500 yuan/ton, up 3.14% from the previous period; the silicone oil average price was 12,850 yuan/ton, unchanged from the previous period. Due to factory maintenance, the supply has tightened periodically, and the price has increased [114]. 3.5铝合金开工回升 - **Start - up Rate**: In the week of October 9, the start - up rate of primary aluminum alloy was 58%, a month - on - month decrease of 0.4 percentage points; the start - up rate of recycled aluminum alloy was 58.9%, a month - on - month increase of 2.3 percentage points [122]. - **Price**: As of October 10, the average ADC12 price was 21,100 yuan/ton, up 0.96% from the previous period; the average A356 price was 21,450 yuan/ton, up 1.42% from the previous period [125]. 3.6库存维持高位 - **Industrial Silicon Inventory**: As of October 9, the social inventory of industrial silicon (social inventory + delivery warehouse) was 545,000 tons, a month - on - month increase of 2,000 tons; the total factory inventory in Xinjiang, Yunnan, and Sichuan was 167,900 tons, a month - on - month increase of 54,000 tons. As of October 10, the exchange - registered warehouse receipts were 50,281 lots, equivalent to 251,400 tons of spot [139]. - **Polysilicon Inventory**: As of October 9, the total polysilicon inventory was 240,000 tons, an increase of 14,000 tons [74].

Core Viewpoint - 博迁新材 has signed a strategic cooperation agreement with Company X, expecting to sell between 5,420 tons and 6,495 tons of nickel powder from August 2025 to December 2029, with estimated sales amounting to approximately 4.3 billion to 5 billion yuan [1] Group 1: Strategic Cooperation Agreement - The agreement stipulates that the sales amount is subject to actual sales orders, with potential uncertainties due to force majeure or unforeseen factors [1] - The expected sales amount is based on current product prices and exchange rates, indicating a significant revenue opportunity for 博迁新材 [1] Group 2: Impact on Performance - 博迁新材 anticipates that the agreement will positively impact its operating performance in the current and future periods, although revenue recognition may have uncertainties due to delivery cycles [4] - The company reported a revenue of approximately 519 million yuan in the first half of 2025, representing an 18.30% year-on-year increase, and a net profit of approximately 106 million yuan, reflecting a 93.34% increase compared to the previous year [8] Group 3: Industry Trends and Product Demand - The rapid development of artificial intelligence (AI) is benefiting 博迁新材, as AI servers require significantly more MLCC, which in turn increases the demand for nickel powder [4][5] - The company is optimizing its product structure in response to the growing demand for MLCC and adapting its copper powder products to meet customer needs [5] Group 4: Production Capacity and Future Prospects - As of mid-2025, 博迁新材 has 145 production lines for nickel powder and 20 for copper powder, with nickel powder lines operating at full capacity and copper powder lines at 50% utilization [6] - The company is also developing new technologies for producing various metal and non-metal powders, which may expand its market applications beyond electronic components [6]

Report Summary 1. Investment Rating - The report suggests a strategy of shorting industrial silicon at high prices and indicates that the short - term sentiment for polysilicon may cool down [1]. 2. Core View - The report provides a comprehensive analysis of the fundamentals of industrial silicon and polysilicon, including price, volume, inventory, profit, and raw material costs, and also presents relevant macro and industry news [1][3]. 3. Summary by Directory 3.1 Fundamental Tracking - **Futures Market**: Si2511 (industrial silicon) had a closing price of 8,905 yuan/ton, with a change of - 60 yuan compared to T - 1, 165 yuan compared to T - 5, and 280 yuan compared to T - 22. Its trading volume was 475,698 lots, and the open interest was 285,052 lots. PS2511 (polysilicon) had a closing price of 53,205 yuan/ton, with a change of - 285 yuan compared to T - 1 and - 505 yuan compared to T - 5. Its trading volume was 198,758 lots, and the open interest was 122,834 lots [1]. - **Basis**: The spot premium or discount of industrial silicon and polysilicon showed different changes compared to different benchmarks. For example, the industrial silicon spot premium (against East China Si5530) was + 445 yuan/ton, with a change of 60 yuan compared to T - 1, - 15 yuan compared to T - 5, and - 330 yuan compared to T - 22 [1]. - **Price**: The price of Xinjiang 99 - silicon was 8,800 yuan/ton, up 50 yuan compared to T - 1, 200 yuan compared to T - 5, and 100 yuan compared to T - 22. The price of polysilicon - N - type re - feedstock was 52,600 yuan/ton, up 50 yuan compared to T - 1, 1,050 yuan compared to T - 5, and 5,600 yuan compared to T - 22 [1]. - **Profit**: The profit of silicon plants in Xinjiang (new standard 553) was - 2,366 yuan/ton, with a change of - 60 yuan compared to T - 1, - 165 yuan compared to T - 5, and 55 yuan compared to T - 22. The profit of polysilicon enterprises was - 14.1 yuan/kg, with a change of 0.4 yuan compared to T - 1, 0.7 yuan compared to T - 5, and 2.9 yuan compared to T - 22 [1]. - **Inventory**: The social inventory of industrial silicon (including warehouse receipt inventory) was 54.3 million tons, with an increase of 0.4 million tons compared to T - 5. The manufacturer inventory of polysilicon was 21.9 million tons, with an increase of 0.8 million tons compared to T - 5 [1]. - **Raw Material Costs**: The price of silicon ore in Xinjiang was 330 yuan/ton, with a decrease of 10 yuan compared to T - 5 and T - 22. The price of washed coking coal in Ningxia was 1,100 yuan/ton, unchanged compared to T - 1 and T - 5, and up 130 yuan compared to T - 22 [1]. 3.2 Macro and Industry News - The Ningxia - Hunan ±800 kV UHV DC transmission project was officially put into operation, which can transmit 36 - 40 billion kWh of clean electricity annually, meeting 1/6 of Hunan's electricity demand. Sungrow provided 1.27GW high - power string inverters for the Ningxia photovoltaic base of the project [1][3]. 3.3 Trend Intensity - The trend intensity of industrial silicon and polysilicon was both - 1, indicating a relatively bearish view [3].

Summary of Conference Call on PCB Materials and Industry Trends Industry Overview - The conference call focused on the PCB (Printed Circuit Board) materials industry, particularly the development and demand for high-performance copper-clad laminates (CCL) and related materials [1][7]. Key Points and Arguments 1. **CCL Composition and Cost Structure**: CCL is a critical material in PCB manufacturing, accounting for 15%-30% of costs. Its main components include copper foil (approximately 40%), resin (25%-30%), and electronic cloth (20%-25%) [1][5]. 2. **Demand for High-Performance CCL**: The demand for high-performance CCL is driven by upgrades in downstream applications, particularly in high-end servers (e.g., Ma 7 to Ma 9), which require lower dielectric constants and losses for faster signal transmission. The demand for high-end CCL is expected to double by 2026 [1][6]. 3. **Electronic Cloth Upgrades**: The electronic cloth market is evolving from traditional types to second and third-generation products, with significant price increases. The price of third-generation quartz fiber cloth (Q cloth) used in Ma 9 CCL can reach 250-400 RMB/meter [1][8]. 4. **Silicon Powder Application**: The application of silicon powder in CCL is transitioning from low-cost angular silicon powder to high-cost spherical silicon powder, with prices increasing significantly. By July 2025, the filling ratio of silicon powder is expected to exceed 30% [3][12]. 5. **Resin Formulation Changes**: The formulation of electronic-grade resins is evolving to meet higher performance requirements, with a shift from traditional epoxy resins to more advanced combinations like PPO and hydrocarbon resins. The price of high-grade resins has seen substantial increases, with some reaching 1 million RMB/ton [14][15]. 6. **Market Dynamics and Supplier Opportunities**: Domestic resin suppliers are gradually gaining market share, with companies like Shengquan Group and Dongcai Technology making breakthroughs in high-end resin products. These companies are expected to see significant performance improvements in the coming years [19][20]. 7. **Future Demand Trends**: The demand for various electronic components is expected to surge due to upgrades from high-end cloud manufacturers, leading to increased procurement of advanced materials even before large-scale production begins [10][18]. Additional Important Insights - **Market Share Concentration**: High-end materials and components are likely to be concentrated among leading companies, which will capture significant market shares due to their advanced processing capabilities and product quality [10][21]. - **Performance Expectations for Suppliers**: Companies like Dongtai Technology and Shengquan Group are highlighted as key players to watch, as they are positioned to expand their production capacity and meet the growing demand for high-end materials [21]. This summary encapsulates the critical insights from the conference call regarding the PCB materials industry, highlighting the trends, challenges, and opportunities within the sector.

Report Summary 1. Report Industry Investment Rating No investment rating information is provided in the report. 2. Core Viewpoints The report focuses on the fundamentals of industrial silicon and polysilicon, including futures market data, price, profit, inventory, and raw material costs. It also mentions relevant macro and industry news, and provides trend intensity indicators for industrial silicon and polysilicon [2][3][4]. 3. Summary by Related Catalogs 3.1 Fundamental Tracking - **Futures Market Data**: For industrial silicon, Si2509's closing price was 9,525 yuan/ton, with a decrease of 130 yuan compared to T - 1. Its trading volume was 1,681,997 lots, and the open interest was 334,776 lots. For polysilicon, PS2509's closing price was 50,080 yuan/ton, an increase of 975 yuan from T - 1, with a trading volume of 1,246,241 lots and an open interest of 165,641 lots [2]. - **Price**: The price of East China oxygen - passed Si5530 was 10,000 yuan/ton, up 300 yuan from T - 1. The price of Yunnan Si4210 was 10,300 yuan/ton, also up 300 yuan. The price of polysilicon - N - type re - feedstock was 46,000 yuan/ton, unchanged from T - 1 [2]. - **Profit**: The profit of silicon plants in Xinjiang (new standard 553) was - 1,676 yuan/ton, a decrease of 225 yuan from T - 1. The profit of silicon plants in Yunnan (new standard 553) was - 3,549 yuan/ton, a decrease of 186 yuan from T - 1. The profit of polysilicon enterprises was - 18.1 yuan/kg, unchanged from T - 1 [2]. - **Inventory**: The social inventory of industrial silicon (including warehouse receipt inventory) was 54.7 million tons, with a decrease of 0.4 million tons compared to T - 5. The enterprise inventory of industrial silicon (sample enterprises) was 17.3 million tons, a decrease of 0.11 million tons compared to T - 5. The industry inventory (social + enterprise inventory) was 72.0 million tons, a decrease of 0.50 million tons compared to T - 5. The futures warehouse receipt inventory of industrial silicon was 25.1 million tons, unchanged from T - 1. The manufacturer inventory of polysilicon was 24.9 million tons, a decrease of 2.7 million tons compared to T - 5 [2]. - **Raw Material Costs**: The price of silicon ore in Xinjiang was 340 yuan/ton, unchanged compared to T - 5. The price of silicon ore in Yunnan was 320 yuan/ton, also unchanged compared to T - 5. The price of washed coking coal in Xinjiang was 1,250 yuan/ton, unchanged compared to T - 5 [2]. 3.2 Macro and Industry News On July 21st, the Guizhou Energy Bureau issued the "Guizhou Province Power Demand Response Trading Scheme", which clarifies market participants, trading varieties, and price mechanisms. Market participants include industrial and commercial adjustable loads, energy storage, virtual power plants, and electric vehicle charging facilities, etc. [3][4] 3.3 Trend Intensity The trend intensity of industrial silicon is 0, and that of polysilicon is 1. The trend intensity ranges from - 2 to 2, with - 2 being the most bearish and 2 being the most bullish [4]

Report Investment Rating - The investment approach for industrial silicon is mainly short - position allocation, and the spot price of polysilicon is weak with a downward driving force in the futures market [1] Core View - The report analyzes the fundamentals of industrial silicon and polysilicon, including futures market data, basis, price, profit, inventory, and raw material costs. It also mentions an Iraqi solar power project and the trend strength of both products [1][3] Summary by Relevant Catalogs Fundamental Tracking - **Futures Market Data**: For industrial silicon, Si2507's closing price is 7,455 yuan/ton, with a decrease of 105 yuan compared to T - 1. Its trading volume is 309,628 lots, a decrease of 190,329 lots compared to T - 1. The open interest is 121,504 lots, a decrease of 25,532 lots compared to T - 1. For polysilicon, PS2507's closing price is 33,585 yuan/ton, a decrease of 670 yuan compared to T - 1. Its trading volume is 65,591 lots, a decrease of 14,270 lots compared to T - 1, and the open interest is 61,698 lots, an increase of 1,499 lots compared to T - 1 [1] - **Basis**: The spot premium of industrial silicon (against East China Si5530) is +670 yuan/ton, compared to 65 yuan/ton in T - 1. The spot premium of polysilicon (against N - type re - feeding) is - 690 yuan/ton, compared to - 390 yuan/ton in T - 1 [1] - **Price**: The price of East China oxygen - passing Si5530 is 8,150 yuan/ton, unchanged from T - 1. The price of Yunnan Si4210 is 9,900 yuan/ton, unchanged from T - 1. The price of polysilicon - N - type re - feeding material is 36,000 yuan/ton, a decrease of 500 yuan compared to T - 1 [1] - **Profit**: The profit of silicon plants (Xinjiang new standard 553) is - 3,771 yuan/ton, a decrease of 105 yuan compared to T - 1. The profit of polysilicon enterprises is - 5.0 yuan/kg, an increase of 0.1 yuan compared to T - 1 [1] - **Inventory**: The social inventory of industrial silicon (including warehouse receipt inventory) is 57.2 million tons, a decrease of 1.5 million tons compared to T - 5. The factory inventory of polysilicon is 27.5 million tons, an increase of 0.6 million tons compared to T - 5 [1] - **Raw Material Cost**: The price of Xinjiang silicon ore is 390 yuan/ton, a decrease of 10 yuan compared to T - 5. The price of Xinjiang washed coking coal is 1,350 yuan/ton, unchanged from T - 5 [1] Macro and Industry News - Iraq's Ministry of Electricity is negotiating with Saudi ACWA Power and UAE Masdar to build solar power plants in Iraq, with a total planned project capacity of 2GW. This cooperation will help Iraq achieve its renewable energy target in the "2030 Energy Strategy" and reduce its dependence on imported fossil fuels [1][3] Trend Strength - The trend strength of industrial silicon is - 1, and that of polysilicon is also - 1, indicating a bearish outlook [3]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The industrial silicon market is experiencing a continuous decline, with cost support weakening, supply increasing, demand remaining weak, high social inventory, and expected short - term price decline. The recommended strategy is to short on rebounds. - The polysilicon market shows a situation of weak supply and demand, with prices falling in both the futures and spot markets. The downstream purchasing willingness is low, and the recommended strategy is to short on rallies. [2] 3. Summary by Related Catalogs 3.1 Industrial Silicon 3.1.1 Cost and Profit - The power cost in the southwest production area is gradually decreasing as it enters the flat - water period, and the overall in - production cost of the industry will decline after the shutdown of high - cost enterprises in the north. Cost support for silicon prices is insufficient. - In May, the average profit of national industrial silicon 553 was - 2,417 yuan/ton, a month - on - month decrease of 416 yuan/ton; the average profit of 421 was - 2,188 yuan/ton, a month - on - month decrease of 103 yuan/ton. [2][36] 3.1.2 Supply - Last week, the number of open furnaces increased significantly, mainly from restarted enterprises in Xinjiang. As of now, the restart in Xinjiang has temporarily ended, and there are no expected new restarts in the short term. In Sichuan, enterprises are gradually increasing furnace openings with the decline of electricity prices in the wet season. Yunnan still has restart plans after maintenance, expected to restart around mid - to - late June. - In the week of May 29, the silicon enterprise's furnace - opening rate increased slightly, with a net increase of 20 furnaces. [2][37] 3.1.3 Demand - Downstream demand is weak, market transactions are low, and most transactions are at low prices. Polysilicon plants maintain a large - scale production reduction, the organic silicon industry reduces production, and the demand for silicon - aluminum alloy has weakened, with rigid procurement of industrial silicon. [2] 3.1.4 Inventory - Social inventory remains at a high level, and there is significant short - term inventory reduction pressure. As of May 29, the industrial silicon social inventory (warehouse inventory + delivery warehouse) was 58.9 million tons, a month - on - month increase of 0.7 million tons; the factory inventories in Xinjiang, Yunnan, and Sichuan totaled 23.77 million tons, a month - on - month increase of 0.35 million tons. [2][119] 3.1.5 Market Outlook - With strong restart expectations in the southwest production area and an increase in furnace openings of some silicon enterprises in the north, the supply shows an obvious increasing trend, while the demand maintains rigid procurement. Futures and spot prices are falling in tandem, and it is expected that there will be no significant improvement in the short term. The futures price is expected to range from 7,000 - 9,000 yuan/ton, and the strategy is to short on rebounds. [2] 3.2 Polysilicon 3.2.1 Supply - In May, the polysilicon output was 96,100 tons, a month - on - month increase of 700 tons and a year - on - year decrease of 80,900 tons. As of May 29, the polysilicon inventory was 270,000 tons, an increase of 10,000 tons. In June, the start - up of polysilicon enterprises will increase and decrease simultaneously, and production scheduling is expected to increase slightly. [67] 3.2.2 Demand - Demand is weak. Domestically, orders have shrunk significantly, while overseas orders are relatively stable. Long - term component orders have decreased significantly, and the price of photovoltaic components has continued to decline. The demand for battery chips from the component side has decreased, and it is expected that the production scheduling of battery chips will be tight in June. Silicon wafer prices have declined across all sizes, and there is a strong expectation of production reduction. [2] 3.2.3 Market Outlook - The supply and demand of polysilicon are both weak, and the futures and spot prices are falling in tandem. The downstream purchasing willingness remains low, and there is no expectation of bottom - fishing for inventory. Although the number of warehouse receipts has not increased significantly, the weak fundamentals have not led to the trading of squeeze - out risks in the futures price. In the short term, warehouse receipts have alleviated the price factor, and the strategy is to short on rallies. [2] 3.3 Organic Silicon 3.3.1 Production - In May, the operating rate of China's DMC was 62.37%, a month - on - month increase of 3.79 percentage points; the DMC output was 184,000 tons, a month - on - month increase. The industry mainly maintains production with reduced loads, and the overall operating rate has slightly increased. [87] 3.3.2 Price - As of May 30, the average price of DMC was 11,450 yuan/ton, unchanged from the previous month; the average price of 107 rubber was 12,100 yuan/ton, a month - on - month decrease of 150 yuan/ton; the average price of silicone oil was 13,900 yuan/ton, a month - on - month decrease of 50 yuan/ton. As the price of organic silicon has fallen to a low level, downstream purchasing willingness has increased, and market confidence has been somewhat restored. [94] 3.4 Silicon - Aluminum Alloy 3.4.1 Production - In the week of May 29, the operating rate of primary aluminum alloy was 54.6%, unchanged from the previous week; the operating rate of recycled aluminum alloy was 53%, a week - on - week decrease of 1.6 percentage points. [104] 3.4.2 Price - As of May 30, the average price of ADC12 was 20,200 yuan/ton, a month - on - month decrease of 0.98%; the average price of A356 was 20,750 yuan/ton, a month - on - month decrease of 0.24%. [107]