In November, domestic polycrystalline silicon continued its downward trend from the previous month, with an exacerbation of the decline. According to the Commodity Market Analysis System of Business Society, the monthly decline of single crystal dense materials is 6.82% (1.93% in October). The main reason is that the downstream market generally resists high prices, leading to an increase in supply and a buildup of inventory in enterprises. Silicon material manufacturers have weakened their bargaining power, reducing prices to clear inventory. According to data from Business Society. As of the end of the month, the mainstream range for single crystal dense materials with a model of first level solar energy is maintained at 5900-65000 yuan/ton.

On the supply side, silicon material manufacturers are maintaining a reasonable level of operation, and maintenance equipment has been gradually started before. The accumulation of new production facilities continuously releases production, bringing about an increase in supply, completely reversing the supply-demand pattern, and gradually revealing oversupply. In addition, the downstream crystal pulling end has a heavy wait-and-see sentiment, and actual transactions are lower than expected. This month, major silicon material factories are mainly reducing prices to clear inventory.

On the demand side, the market demand in November was relatively weak, and the overall inventory of silicon wafers continued to rise. The market entered a phase of accumulation, and some second tier silicon wafer manufacturers showed a clear willingness to reduce production. The profits of silicon wafer factories were compressed to a low level, and most crystal drawing factories have reduced their procurement volume to force silicon material manufacturers to lower prices. So although the overall transaction within the month was average, the decline in silicon wafers significantly narrowed. The game between upstream and downstream silicon material and silicon wafer manufacturers continues. As of the end of the month, model M10 monocrystalline silicon wafers have experienced a significant decline, with a monthly decrease of 0.1 yuan and mainstream transaction prices dropping to 2.30 yuan per wafer; The price of G12 single crystal silicon wafers has dropped by 0.1 yuan, and the current mainstream transaction price is 3.3 yuan per wafer.

From the perspective of downstream demand for battery cells, the production of downstream battery cells has remained stable, but there are signs of a slowdown in downstream component procurement, with the price of battery cells mainly falling. The overall price decline in November was not significant. From the perspective of terminal components, the demand for overseas projects is mainly reduced, which will become a demand constraint. However, the concentrated installation demand in China is still in an upward period, which ensures that there will not be too much fluctuation in demand. Overall, the basic balance is the main focus.

Market forecast: The supply pressure in the silicon material market will not decrease in the near future, and the destocking will continue in the future. There is still a possibility for enterprises to continue reducing prices. Moreover, there has not been much improvement in demand, so the contradiction of oversupply of silicon materials is difficult to alleviate in the short term, and it is expected that silicon materials will continue to operate weakly.