Xinjiang Daqo New Energy Co Ltd and the Surge in Multi-Crystalline Silicon Futures
In a remarkable turn of events, the multi-crystalline silicon futures have continued to hit their upper limits for the second consecutive day, with a monthly increase exceeding 50%. This surge has been driven by a combination of market dynamics and policy expectations, particularly the anticipation of the “anti-internal competition” policy. As of July 23, 2025, the main contract for multi-crystalline silicon futures reached a price of 53,165 CNY/ton, marking a 12% increase, although it slightly retreated to 52,415 CNY/ton by the end of the trading day. Despite this slight pullback, the gains remained over 10%, continuing the trend of hitting the upper limit for two consecutive trading days.
The price of multi-crystalline silicon futures has now surpassed the trading range of the spot market, as well as the full cost line for most production facilities. According to the latest data from the China Nonferrous Metals Industry Association Silicon Branch, the spot transaction price for multi-crystalline silicon N-type re-injection material was between 4,000 and 5,000 CNY/ton in the week leading up to July 16, 2025.
This unprecedented price movement has significantly impacted related stocks, particularly those in the photovoltaic and silicon energy sectors. Companies such as Silibao Technology, Yijin Optoelectronics, Dongyue Silica, and Hesheng Silica have seen their stock prices increase by over 5%. Additionally, stocks like Tongwei Group, Daquan Energy, and TCL Zhonghuan have also experienced gains, riding the wave of the multi-crystalline silicon futures’ performance.
The surge in multi-crystalline silicon futures is attributed to the market’s optimistic sentiment, fueled by the expected “anti-internal competition” policy. This policy is anticipated to alleviate some of the pressures on domestic industrial products, leading to a rebound in prices. Since July, the average spot price for N-type re-injection material has risen from 33 CNY/kg to 43 CNY/kg, a 30% increase. The futures main contract has also seen a significant rise, from 33,090 CNY/ton to 40,855 CNY/ton, marking a 23% increase.
Analysts from Xingye Futures have noted that the trading volume for multi-crystalline silicon has begun to loosen, with some wafer factories accepting increased pricing. This has further solidified the upward trend in the spot transaction prices for multi-crystalline silicon. However, the extent to which companies will benefit from this price increase depends on their ability to control costs, maintain product quality, and enhance sales capabilities. High-quality products are expected to have a competitive edge, potentially leading to the gradual elimination of high-cost production capacities.
Xinjiang Daqo New Energy Co Ltd, listed on the Shanghai Stock Exchange with a market capitalization of 548,743,697,250 CNY, is among the companies that could see a significant impact from these market dynamics. As the multi-crystalline silicon futures continue to set new highs, the photovoltaic and silicon energy sectors are poised for further growth, with potential benefits for companies like Xinjiang Daqo New Energy Co Ltd that are involved in these industries.