[SMM Cast Aluminum Alloy Morning Comment: Alloy Enterprises Yet to Resume Work, Market Mainly Sluggish] On Tuesday, the SMM ADC12 price was raised by 100 yuan/mt to 23,750 yuan/mt. Post-holiday, futures showed strong performance on the first day, boosting market sentiment, but secondary aluminum enterprises' quotations displayed some divergence. Some enterprises, considering downstream operations have not fully resumed, maintained pre-holiday quotation ranges, holding steady and adopting a wait-and-see approach; others raised prices by 100 yuan/mt accordingly. Inquiry activity in the market gradually recovered, but actual transactions remained relatively light, with the market still dominated by a wait-and-see stance. As the shutdown period for secondary aluminum plants this year was slightly longer YoY, most enterprises are scheduled to resume work between the eighth and fifteenth days of the first lunar month. Supply release pace is expected to be relatively slow in the first week after the holiday, providing phased support to prices. However, demand-side recovery is more likely to be gradual; before end-user orders show significant volume, downstream procurement will remain cautious and need-based. Cost side, continued attention is needed on price fluctuations of aluminum scrap and auxiliary materials such as copper and silicon. Primary aluminum trends remain a key variable affecting market sentiment and the price center. Overall, ADC12 prices are likely to continue the pre-holiday sideways movement pattern in the initial post-holiday period. Subsequent direction will depend on supply-demand matching after full production resumptions and primary aluminum price performance. If phased restocking coincides with primary aluminum holding up well, there is room for price recovery; otherwise, prices may face slight pressure, but the overall trend is expected to remain sideways.

[PV Express] Tongwei Co., Ltd. (600438) announced on February 24 that the company is planning to acquire a 100% equity stake in Lihao Qingneng through the issuance of shares and payment in cash, and to raise supporting funds. This transaction is not expected to result in a change of the company's controlling shareholder or actual controller, does not constitute a connected transaction, and is anticipated not to constitute a major asset restructuring. As the transaction is still in the planning stage and relevant matters remain uncertain, upon the company's application, trading of the company's shares, convertible bonds, and convertible bond conversion will be suspended starting from the market opening on February 25, 2026, with the suspension period expected not to exceed 10 trading days. Lihao was established in April 2021 and is primarily engaged in the R&D, production, and sales of semiconductor materials such as PV-grade high-purity polysilicon and electronic-grade polysilicon. Data shows that Qinghai Lihao currently has a polysilicon capacity of approximately 150,000 mt/year.

[SMM Flash News] According to SMM's supply-demand balance calculations for silicon metal, the silicon balance data from January to May was around +17,000 mt. Looking at specific months, the industry experienced continuous inventory buildup from January to March, but due to reduced supply, the balance shifted to destocking from April to May, resulting in a slight overall inventory buildup. From June to July, both supply and demand for silicon metal are expected to increase, with northern major plants increasing production and output rising in the southwest on the supply side, and silicone sector restarting and increasing production of previously idled capacity on the demand side. However, there is uncertainty regarding the operating rate of polysilicon. Overall, the balance is expected to show inventory buildup from June to July. (Supply includes silicon (Si≥97%) and other types of silicon.)

[Spot Silicon Metal Prices Consolidate, Polysilicon Price Center Weakens]: This week, spot silicon metal prices consolidated. In the spot market, SMM east China oxygen-blown #553 silicon was priced at 8,000-8,300 yuan/mt, unchanged WoW. #441 silicon was priced at 8,400-8,600 yuan/mt, unchanged WoW. #421 silicon was priced at 8,400-9,000 yuan/mt, unchanged WoW. In the futures market, the main silicon metal contract Si2507 fluctuated considerably around 7,300-7,550 yuan/mt. Futures prices rose by approximately 200-300 yuan/mt WoW. After the futures market rose, spot-futures price spread quotes remained stable, with absolute prices increasing WoW. There was a strong sentiment among downstream buyers of silicon metal to drive down prices, and their acceptance of high prices was poor. The availability of low-priced cargoes in the market decreased, and the transaction center for some specifications moved higher WoW.

[Silicon Metal Prices Narrow Decline, Market Trading Sentiment Remains Subdued]: The market price of silicon metal continued to weaken, but the decline narrowed significantly compared to the previous period. In the futures market, the main silicon metal contract fluctuated considerably during the week. The Si2507 contract reached a high of 7,330 yuan/mt and a low of 6,990 yuan/mt during the week. On June 5, the main contract closed at 7,135 yuan/mt, down 80 yuan/mt or 1% WoW, with the decline narrowing. In the spot market, SMM east China oxygen-blown #553 silicon was priced at 8,000-8,300 yuan/mt, down 300 yuan/mt WoW, while #441 silicon was priced at 8,400-8,600 yuan/mt, also down 300 yuan/mt WoW. After the futures market declined, some silicon suppliers gradually followed suit with lower quotes, but most producers, facing significant losses, could not suspend quoting. On Wednesday, the futures market rebounded nearly 3%, but the sentiment in the silicon market remained lackluster, with few downstream users showing a "rush to buy amid continuous price rise" restocking sentiment.

[SMM Weekly Review: Cell Prices Continue to Decline, Polysilicon Prices Remain Stable for Now] This week, the price index for N-type polysilicon was 35.21 yuan/kg. N-type recharging polysilicon was priced at 35-38 yuan/kg, while N-type mixed polysilicon was priced at 31-36 yuan/kg. Overall, polysilicon prices were largely stable. Multiple transactions of polysilicon were recorded before the holiday, with small factories closing deals at 32 yuan/kg and some high-quality mixed polysilicon from large factories closing at 35 yuan/kg. The most-traded contracts of enterprises maintained a quoted price of 36-37 yuan/kg for dense recharging polysilicon. Market transactions were weak after the holiday. A domestic base resumed production this week, attracting market attention. Prices remained stable for now, with the market closely monitoring subsequent supply conditions and the latest wafer transaction status.