On December 26, polycrystalline silicon futures were officially launched on the Guangzhou Futures Exchange (GFE). This marks the third new energy metal product introduced by GFE, following the listings of industrial silicon and lithium carbonate futures.
XINHUA
On December 26, polycrystalline silicon futures were officially launched on the Guangzhou Futures Exchange (GFE). This marks the third new energy metal product introduced by GFE, following the listings of industrial silicon and lithium carbonate futures. After trading opened, all seven polycrystalline silicon futures contracts showed strong upward momentum, reaching the daily price limit with a 13.99% increase, priced at 44,000 yuan per ton. On the first trading day, the margin requirement for the contracts was set at 9% of the contract value, with a daily price fluctuation limit of 14% based on the listing price.
Polycrystalline silicon is a critical raw material for the photovoltaic (PV) industry. It is produced from industrial silicon and primarily used in the manufacturing of silicon wafers. The launch of these futures contracts is designed to meet the risk management needs of both upstream and downstream businesses. It is expected to help lower costs, improve efficiency, and enhance the security of the PV supply chain, while also promoting a more rational allocation of resources across the industry. On one hand, companies along the supply chain can use the price signals from the futures market to better plan their production capacities, reducing resource waste. On the other hand, the futures market is anticipated to help streamline industry development, accelerating the exit of outdated production capacity. Furthermore, polycrystalline silicon futures are expected to interact with industrial silicon futures, fostering greater integration between production and finance. The listing is also seen as a step toward increasing China’s influence over pricing in international markets, helping to expand the global reach of China's photovoltaic industry.
Photovoltaic industry expert LvJinbiao believes that polycrystalline silicon futures reflect the expected supply-demand dynamics, with most analysts forecasting a supply surplus in the near term. The introduction of these futures contracts is expected to help absorb some of the excess inventory. However, since these products have short delivery cycles, the increased supply at the time of delivery could impact the spot market.