Revenue for local solar companies Green Energy Technology Inc (綠能科技) and Gintech Energy Corp (昱晶能源) increased last month, benefiting from higher inventory buildup demand from China and the US amid rekindled solar disputes between the two nations.
The recovery has exceeded Green Energy’s expectations.
Cautious about market demand, the nation’s largest solar wafer maker in March had lowered its factory utilization to 80 percent from 90 percent the previous month to cope with an industry slump.
“The market sentiment is changing rapidly,” Green Energy spokesperson Christine Chen (陳婷婷) said on the telephone. “We are seeing strong customer demand for our high-efficiency solar wafers. All of our [solar wafer] capacity has been booked this month.”
Utilization last month had returned to more than 90 percent, she added.
Revenue last month rose 6.51 percent to NT$907 million (US$30.14 million) from NT$852 million in April due to an increase in prices driven by short supply of high-efficiency solar wafers ahead of the expiration of China’s subsidy program this month, Green Energy said yesterday.
Average selling prices climbed 1 percentage point to 7 percent last month from a month earlier, Chen said.
Prices might hold firm this month at least, as demand also increased on speculation that China might extend the program to September, she said.
Renewed disputes between China and the US also stimulated demand after the US sought to impose an emergency tariff on solar cells imported from China amid a new US anti-dumping probe launched last week, Chen said.
Solar cell maker Gintech said robust demand primarily from China and the US helped drive up its revenue and average selling price last month.
Revenue jumped 15.2 percent month-on-month to NT$1.08 billion from April’s NT$941 million, the company said.
“We are seeing rush orders and encouraging momentum from the US triggered by the 201 case [the anti-dumping investigation],” Gintech said in a statement yesterday.
“Demand for high-efficiency products was particularly strong, and we even began to see wider price premiums for products made in the Thailand factory, triggered by inventory replenishment from the US,” the company said.
Gintech expects the momentum to carry into the second half of this year as the industry enters its high sales season
Green Energy and Gintech shares rose 0.98 percent and 0.61 percent to NT$15.45 and NT$16.45, respectively, retreating from gains of 3.27 percent and 3.67 percent in early morning trading.
The stocks rose after a report by the Chinese-language Economic Daily News yesterday said that the government plans to scrap import tariffs on four major solar module components.
Green Energy said the tax incentives would have a positive effect on solar module assemblers, as it would lower manufacturing costs and enable local companies to be more competitive.
The government does not impose any import tariff on solar modules, but levies an 8 percent import tax on glass used in solar modules and a 5 percent tax on other components such as silicone.
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