There may be a way for traders to profit from rising polycrystalline silicon (Poly-Si) prices.

After speaking with an industry insider in China, Axiom analyst Gordon Johnson learned that the Chinese government began a customs investigation into Poly-Si imports earlier this month.

Johnson believes this news will benefit Chinese Poly-Si makers the most, especially pure-play Daqo New Energy Corp DQ 4.29%.

“Thus, as protectionism from China in the poly market should benefit Chinese poly makers the most (while this is an incremental positive for GCL given GCL uses ~80% of its poly to make wafers, we see this as much more of a benefit for the pure-play poly makers—i.e., DQ), & from our cost curve analysis we see n-term upside as likely for select Chinese poly vendors, w/DQ positioned as the clear winner,” Johnson explains.

Johnson remains…

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