SourceAsiangamesjakarta2018Yide Binhai Coal team

Authors: Zhang Haiduan / F3048149, Z0015532 /

Industrial silicon futures rose one after another this week, and the main 07 contract rose 4% on Friday.Asiangamesjakarta2018.41%, the highest price is close to the daily limit price, but the industry fundamentals have not improved. For this rise, according to some relevant news or rumors in the market, there are mainly the following aspects:

According to relevant reports on the 1st and 21st, on the afternoon of May 17, under the guidance of the Electronic Information Department of the Ministry of Industry and Information Technology, the China Photovoltaic Industry Association organized a "Symposium on High-quality Development of the Photovoltaic Industry" in Beijing, which pointed out that the industry should be encouraged to merge and reorganize, smooth the market exit mechanism, and strengthen the crackdown on vicious competition in sales below cost prices. (more industry initiatives)

2. It is rumored that Chinese manufacturers have won the largest share of Saudi photovoltaic projects. (it has not been confirmed that Saudi Arabia intends to invest hundreds of billions of dollars in the development of green energy, and the demand for photovoltaic has indeed increased since 2023. According to customs data, China's exports of Saudi photovoltaic components accounted for 3% of the total export volume in 2023.Asiangamesjakarta2018.22%, the share is increasing, but Saudi Arabia's new future city is a longer-term plan, the follow-up progress still needs to be watched, and the short-term impact is limited. )

3. Low price valuation, strong drive of other non-ferrous varieties, capital layout, tight storage capacity of hype and so on. (after the market fell below 12000 yuan / ton, the problem of low valuation has been mentioned all the time, and there are also some differences among investors, some of which have made a short-term rebound, but putting aside the basic weakness, it seems far-fetched to simply do low valuation to pull the noodles. For storage capacity, it is difficult to digest the flow of existing warehouse receipts, and after the futures rise, new hedging and cash arbitrage enter the market, warehouse receipts are further increasing, storage capacity is indeed a little tight, but some warehouse applications for capacity expansion have been approved. )

4. Power system reform (electricity reform has long been proposed that the promotion of marketization is a long-term process, and the short-term impact is limited. Some people see that it is an one-sided association with the fluctuation of electricity prices. )

The above relevant news has indeed given a certain boost to market sentiment, but to explain this wave of sharp rise in disk prices, it is still logically far-fetched.Asiangamesjakarta2018We also did not find a more reasonable point of view to explain the rising behavior of funds. From the point of view of the supply and demand pattern, the fundamentals are still weak and do not support the upward price. in terms of supply, the output in the northwest remains high, the southwest gradually enters a period of flat water and abundant water, the willingness of silicon enterprises to resume production is enhanced, and the subsequent start-up rate is further determined. while the main downstream polycrystalline photovoltaic industry as a whole entered a loss situation, polysilicon manufacturers began to overhaul and reduce production in May, but from the inventory point of view, it is still in the base warehouse. Inventory pressure is huge, the situation has not been alleviated, silicon material price pressure continues to fall, followed by more manufacturers may enter the production reduction, enterprises for the purchase of raw material silicon powder silicon continue to reduce prices. The overall inventory of industrial silicon is also high and will continue to base this week. The sharp rise in the market is divorced from the fundamentals, driven by the strong futures, manufacturers hedging and spot merchants buying period arbitrage may pull the spot short-term rise, but in the fundamentals have not changed, it is expected that this rise is difficult to maintain for a long time, the subsequent warehouse receipt accumulation pressure will also be greater, temporarily cautious operation.

asiangamesjakarta2018| Industrial silicon surged sharply this week. Have the fundamentals changed?

Audit: Zeng Xiang / F0307622, Z0003110 /

Report completion date: 26 May 2024

Futures Investment Consulting qualification: Securities Regulatory Commission license [2012] No. 38

Disclaimer

This research report is prepared by Yide Futures Co., Ltd. (hereinafter referred to as "Yide Futures"). The company has the futures investment consulting business qualification approved by China Securities Regulatory Commission (CSRC permit [2012] No. 38).

This research report is provided by Yide Futures to its clients and has no intention to violate or intend to violate the laws and regulations of any country, region or other legal jurisdiction. No institution or individual may alter or in any way quote, reprint, send, disseminate or reproduce this report without the prior written permission of Yide Futures.

The contents and opinions contained in this report are based on public information or field research materials that researchers believe to be credible, and only reflect the different ideas, opinions and analytical methods of the authors of this report. However, one German Futures does not guarantee the accuracy and completeness of such information, and one German Futures does not guarantee that such information will not be changed. The information and opinions expressed in this report are for reference only and do not constitute any final operation recommendations for investment, law, accounting or taxation. Yide Futures does not guarantee the final operation recommendations with respect to the contents of the report. Shall not be liable for any loss arising from the use of the materials in this report. Clients should not rely solely on this report to replace their own independent judgment. Yide Futures shall not be liable for any loss caused by the use of the materials in this report.

Company headquarters address: 16th floor, Xinda Plaza, 188 Jiefang North Road, Xiaobailou Street, Heping District, Tianjin

National unified customer service hotline: 400-7008-365

Official website: www.ydqh.com.cn