The negative news just keeps coming from the solar sector, where industry leader Suntech (NYSE: STP) reported its second consecutive quarterly loss and Canadian Solar (Nasdaq: CSIQ), one of the few firms that had managed to stay profitable, finally slipped into the loss column as inventories swelled and their margins continued a downward slide. (Suntech announcement; Canadian Solar announcement) It goes without saying that industry laggard LDK Solar (NYSE: LDK) also reported a massive third-quarter loss (company announcement), and all 3 companies predicted more turbulence ahead. The one potential bright spot is plummeting prices for polysilicon, the main raw material used to make their solar cells, which, ironically could someday push solar cell prices down to the point where they become competitive with traditional power sources like coal and oil. Unfortunately, by the time that happens many of these solar cell makers could be out of business. In addition to huge oversupply in the market, the Chinese firms face potential punitive tariffs from the US — one of the solar industry’s top markets — if an ongoing investigation determines they are selling their products at below-market prices. (previous post) The Chinese companies have said they may request their own anti-dumping investigation against Western makers of polysilicon, in a clear tit-for-tat move that certainly won’t help the industry if China implements its own retaliatory punitive tariffs against polysilicon makers. Foreign media are reporting that Chinese solar cell manufacturers are quietly making plans to move some of their production to the United States and other Western markets to avoid potential punitive tariffs, and are also stepping up their efforts to improve technology to make their products more efficient at converting sunlight into electricity. (English article) I still see at least 1 and possibly 2 more painful years ahead for this sector, with at least 2-3 major players likely to either close or be purchased by other companies before the crisis ends. In the meantime, look for the bad news to continue in the fourth quarter and into 2012.
Bottom line: Latest results show the entire solar cell sector has now slipped solidly into the red, with losses likely to continue through most or all of next year.
Related postings 相关文章:
◙ Beijing, Yingli Send Mixed Solar Signals 英利和中国政府似乎“背道而驰”
◙ New Solar Signals: Slowdown Easing Amid Writedowns 太阳能企业减计库存 行业或将开始摆脱危机
◙ Solar Fight Sees Accusations Flying 中美太阳能纠纷引发口水大战
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