Summary of Key Points from Conference Call Records Industry Overview Chemical Industry - The CCPI price index for the chemical industry increased slightly to 3,868 points, up 1% from the previous week, indicating a stabilization in prices [7][8] - Fixed asset investment growth in the chemical raw materials and products sector decreased to -7.9% in October, down from -5.6% previously, signaling a slowdown in investment [7][8] - Improvement in liquidity and anti-dumping policies are seen as catalysts for a potential recovery in the chemical sector in Q4 2025, with a focus on chemical fiber, nickel-chromium, agricultural chemicals, and lithium battery materials [8] Oil Shipping Industry - Oil shipping rates reached a five-year high of $126,000, driven by OPEC production cuts and increased demand, with supply tightness expected in 2025 [3][4] - The U.S. sanctions on Russian and Iranian fleets have further tightened compliant shipping capacity [3] - Recommendations include招商轮船 (Zhongshan Shipping) and 海南港股 (Hainan Port Stocks) due to favorable market conditions [4] Express Delivery Industry - During the Double Eleven shopping festival, 极兔速递 (Jitu Express) reported a global average daily package volume of 94.59 million, a 15% year-on-year increase, with significant growth in Southeast Asia and new markets [5] - The average daily package volume in Brazil exceeded 1 million, confirming the company's expansion potential in new markets [5] - The overall growth rate of express delivery volume slowed to less than 10% due to price increases, particularly in Guangdong where prices rose by approximately 0.5 yuan [6] Lithium Battery Materials - The price of lithium hexafluorophosphate surged from 50,000 yuan to 135,000 yuan per ton, reflecting strong market demand [9][10] - The price of additives like vinyl carbonate (VC) increased significantly due to supply disruptions, with VC prices rising from 77,000 yuan to 115,000 yuan [9][10] - Recommendations include 新宙邦 (New Zobon) and关注莲花科技 (Lianhua Technology) for their strong positions in the lithium battery supply chain [10] Organic Silicon Industry - The organic silicon industry has seen a price increase for DMC to 13,000 yuan, driven by a consensus to reduce production by 30% [11] - No new production capacity is expected from 2025 to 2026, while demand is projected to grow by 8-10%, indicating a potential supply-demand improvement by 2026 [11] Vitamin Market - The vitamin market is showing signs of seasonal demand, with prices for vitamin E and A recovering due to low inventory levels [12][13] - Recommendations include focusing on leading companies like 新和成 (New Hecheng) and 花园生物 (Garden Bio) for investment opportunities [13] Metal Sector - The metal sector has performed strongly, with expectations for continued interest in aluminum and energy metals [14] - Recommendations include 盛新锂能 (Shengxin Lithium) and 雅化集团 (Yahua Group) as key players in the market [14] Coal Industry - The coal sector is experiencing price fluctuations, with port coal prices rising but at a slower rate [15][16] - Anticipated increases in demand due to colder weather could drive prices higher, presenting a good investment opportunity in coal stocks [16] Conclusion - The conference call highlighted various sectors with distinct trends and investment opportunities, particularly in the chemical, oil shipping, express delivery, lithium battery materials, organic silicon, vitamin, metal, and coal industries. Each sector presents unique dynamics influenced by market conditions, regulatory changes, and consumer demand.

Report Title - Industrial Silicon and Polysilicon Weekly Report - Industrial Silicon with No Prominent Contradictions, Polysilicon Continuing the Game between Policy Expectations and Negative Feedback [1] Report Date - November 9, 2025 [1] Report Author - An Ran [1] Industry Investment Rating - Not provided in the report Core Viewpoints - For industrial silicon, the current trading logic is that although there is supply pressure, the expected slight inventory reduction due to the southwest's production cut in the dry season leads to a loose balance overall, with no prominent supply - demand contradictions. The valuation is relatively neutral to low, and it is expected to continue narrow - range fluctuations in the fourth quarter. The risk of breaking through the lower limit comes from the coal end. It is recommended to maintain a low - buying strategy or sell out - of - the - money put options on dips [61]. - For polysilicon, there is still a large divergence between industry policy - oriented expectations and the weak reality from the bottom - up of components. In the fourth quarter, the market will continue to repeatedly game the progress of mergers and acquisitions of production capacity. It will operate in a range - bound manner, with the lower limit anchored to the downstream's willingness - to - hold price and the upper limit pressured by the weak reality. When the futures price is at a discount to the spot price, one can try to buy out - of - the - money call options [66]. Summary by Directory 1. Industrial Silicon and Polysilicon Overview and Strategy Recommendation - **Weekly Overview (11.3 - 11.7)** - **Industrial Silicon**: The price of 553 remained unchanged week - on - week, the price of 99 silicon in Xinjiang increased by 100 yuan, and the price of 421 remained unchanged. The prices of some raw materials such as petroleum coke and charcoal increased. The production in the northwest was basically stable, while the production in Yunnan and Sichuan decreased significantly. The total weekly production of industrial silicon decreased by 8504 tons, a decrease of 8.2% [7]. - **Polysilicon**: The price of N - type polysilicon dense material decreased slightly, the weekly production decreased by 0.12 million tons, a decrease of 4.3%. The inventory of polysilicon factories decreased slightly. The prices of silicon wafers and battery cells decreased slightly, and the production and inventory of silicon wafers also decreased [9]. - **Organic Silicon**: The data of DMC was not updated this week. New orders were weak, and the production of DMC was under pressure. The monomer factories were cautious in purchasing industrial silicon and tried to lower the price [9]. - **Aluminum Alloy**: The silicon consumption increased by 7.4% month - on - month, maintaining the rigid demand rhythm [9]. - **Export**: The export volume decreased by 8.4% month - on - month. Although some overseas aluminum alloy factories had purchase orders, the transaction price was difficult to rise [9]. - **Inventory**: The total inventory of industrial silicon decreased slightly, with a decrease of 0.21 million tons, a decrease of 0.29%. The social inventory decreased, while the factory inventory increased [9]. - **Strategy Recommendation** - **Industrial Silicon**: For the month - spread between November and December contracts, it is recommended to wait and see when it is around 2000 - 2200. For the 06 contract, one can try to short lightly at 11700 - 11800. One can also consider selling out - of - the - money put options on dips [62][64]. - **Polysilicon**: When the futures price is at a discount to the spot price, one can try to buy out - of - the - money call options [66]. 2. Industrial Silicon Supply - **Price/Spread/Cost/Profit** - **Price**: The prices of different grades of industrial silicon showed different trends, with the price of 99 silicon in Xinjiang rising and others remaining stable [7]. - **Cost**: The costs of industrial silicon in different regions were different, and the costs in some regions increased slightly [7]. - **Profit**: Most regions were in a loss state, and the profit situation in some regions improved slightly [7]. - **Industrial Silicon Supply** - **Monthly Production**: The production in different regions showed different trends, with the production in Xinjiang stable and the production in Yunnan and Sichuan decreasing significantly [7]. - **Weekly Production**: The total weekly production of industrial silicon decreased, mainly due to the significant decrease in the production in Yunnan and Sichuan [7]. - **Industrial Silicon Inventory/Supply - Demand Difference** - **Inventory**: The total inventory of industrial silicon decreased slightly, with the social inventory decreasing and the factory inventory increasing [9]. - **Supply - Demand Difference**: The supply - demand situation showed a loose balance, with no prominent contradictions [61]. 3. Industrial Silicon Demand - Polysilicon - **Polysilicon Supply Analysis** - **Price/Spread/Cost/Profit**: The price of polysilicon decreased slightly, the cost was stable, and the profit decreased slightly [9]. - **Polysilicon Supply**: The weekly production of polysilicon decreased, and it was expected that the production in November would be less than 1.2 million tons [9]. - **Polysilicon Demand Analysis** - The demand for polysilicon was affected by the production cut of silicon wafers, and the consumption decreased [9]. - **Polysilicon - Photovoltaic Chain Inventory Analysis** - The inventory of polysilicon factories decreased slightly, and the inventory of silicon wafers also decreased [9].

Core Viewpoint - A fire incident at Dongyue Silicon Materials has impacted half of its organic silicon production capacity, with recovery time uncertain, potentially affecting the company's 2025 financial performance [1][3]. Company Summary - The fire occurred on July 20, affecting the synthetic phase B workshop, which is responsible for 300,000 tons of organic silicon monomer capacity, representing 50% of the company's total capacity [1][3]. - The company has activated its emergency response plan and is working with insurance for damage assessment and claims [2][3]. - Dongyue Silicon Materials has a production capacity of 600,000 tons of organic silicon monomer annually, with key products including silicone rubber and silicone oil, which are widely used in sectors like new energy and construction [2][4]. Industry Summary - The fire's impact on Dongyue's production may lead to short-term supply tightness in the organic silicon market, particularly affecting core raw materials for downstream products [4][5]. - The domestic organic silicon market has seen a 20.9% year-on-year increase in apparent consumption, driven by strong demand from downstream sectors [3][4]. - The incident may create short-term market opportunities for competitors like Xin'an Chemical and Hesheng Silicon Industry, although the overall industry has established redundancy mechanisms to maintain supply resilience [5].

Group 1 - The core viewpoint of the article highlights the significant movement in the organic silicon sector, particularly the surge in stock prices of companies like Morning Light New Materials, which achieved a three-day consecutive limit-up [1] - The announcement from Dow regarding the closure of its siloxane facility in the UK due to cost pressures in Europe is a critical factor influencing the market [1] - The closure is expected to begin in mid-2026 and be completed by the end of 2027, affecting a production capacity of 145,000 tons of DMC, which represents 3% of global capacity and 13.7% of overseas capacity [1] Group 2 - Other companies in the organic silicon sector, such as Morning Chemical, Hongbo New Materials, Silica Treasure Technology, Runhe Materials, and Dongyue Silicon Materials, also experienced price increases following the news [1] - The market reaction indicates a potential shift in supply dynamics within the organic silicon industry due to the impending closure of Dow's facility [1]