Guangzhou Futures Exchange: will adjust price limits, margin requirements, fees, and trading limits for some industrial silicon, polysilicon, and lithium carbonate futures contracts

Guangzhou Futures Exchange: will adjust price limits, margin requirements, fees, and trading limits for some industrial silicon, polysilicon, and lithium carbonate futures contracts

The Guangzhou Futures Exchange (GFE) has announced significant adjustments to the trading parameters for several key futures contracts, including industrial silicon, polysilicon, and lithium carbonate. These changes come in response to recent market conditions and price fluctuations, particularly in the polysilicon sector.

Effective July 21, GFE will implement new transaction fees and position limits for polysilicon futures. Non-futures companies or clients will be restricted to a maximum of 10,000 lots for each polysilicon futures contract and 5,000 lots for industrial silicon futures with delivery in September. These measures aim to manage the market volatility and ensure stable trading conditions [1].

The most active polysilicon futures on the exchange closed up 7.49% on July 1, following a 50% price rally since its launch in December at 30,400 yuan per metric ton. Industrial silicon futures have also seen a 25.1% increase from early June, reflecting broader market trends [1].

According to the OPIS Solar Weekly Report, the China Mono Premium, a benchmark price assessment for mono-grade polysilicon used in n-type ingot production, rose by 6.21% week-on-week, reaching CNY 36.350 ($5.06)/kg. This upward movement is attributed to renewed government guidance aimed at stabilizing prices above manufacturers' production costs [2].

The GFE's adjustments are part of a broader market response to government policies that have shifted from encouraging voluntary production cuts to enforcing minimum price levels. While these measures have contributed to price stabilization, their long-term effectiveness remains uncertain due to high polysilicon inventories and limited downstream demand [2].

The changes highlight the GFE's commitment to maintaining market integrity and ensuring fair trading conditions for all participants. Investors and financial professionals should closely monitor these adjustments and their potential impacts on the broader market.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_P8N3SC011:0-guangzhou-exchange-adjusts-polysilicon-transaction-fees-after-price-rally/
[2] https://www.greenbuildingafrica.co.za/mono-grade-polysilicon-price-rises-6-21-in-china/