Beijing\u2019s fight against disastrous competition in the solar-equipment sector showed early signs of success, with a sustained recovery in prices likely to return leading polysilicon makers to profitability after 18 months of losses, according to analysts.<\/p>\n
A raft of initiatives \u2013 including a proposal to limit manufacturing plants\u2019 power use \u2013 following a series of government-industry meetings to discuss self-imposed production controls, had borne early fruit, they said.<\/p>\n
\u201cUpstream solar-product prices continue rising this week, up 2 to 4 per cent week on week, supported by positive policy sentiment on industry capacity consolidation,\u201d said Pierre Lau, Citigroup\u2019s head of Asian utilities and clean energy research, in a report on Thursday.<\/p>\n
Between early last month and early this month, prices for polysilicon, solar wafers and solar cells have risen 5 to 7 per cent, said Gary Zhou, Deutsche Bank\u2019s head of renewables and utilities research.<\/p>\n
\u201cAt current spot [market] prices, we estimate top-tier polysilicon producers such as GCL Technology may turn to a positive net profit margin starting from September, one of the earliest along the solar value chain,\u201d he said in a note on Thursday.<\/p>\n
GCL shares fell 2.2 per cent to HK$1.36 on Thursday, as the Hang Seng Index declined 1.4 per cent. The stock has risen 8 per cent since the energy caps were proposed.<\/p>\n