Government PolicyThe proposed price floor for polysilicon suggests potential upside, as it indicates government support for maintaining profitable price levels for major producers like Daqo.
Market OutlookThe ability to track Poly-Si futures in China provides a real-time check on the Daqo/Poly-Si bull thesis, suggesting a significant upside potential in Daqo’s shares.
Market StructureChina's new proposed policy includes monthly production quotas for the 4 major poly-Si producers, which make up 80% of global capacity, signaling a more structured and potentially profitable market for Daqo.