May 2 (Bloomberg) -- OCI Co., South Korea’s biggest maker of polysilicon for solar cells, rallied the most in 16 weeks in Seoul trading on speculation industry oversupply may ease and governments may aid the market.
OCI jumped 9.1 percent to 233,500 won at the close on the Korea Exchange, the strongest gain since Jan. 12. The stock was the best-performer on the MSCI Asia Pacific Index.
LDK Solar Co., a Chinese maker of polysilicon, wafers and solar panels, cut 5,554 workers this year after plunging prices reduced margins to record lows. The European Union is working on an investment package of 200 billion euros ($265 billion) for infrastructure, renewable energy and technology in the euro-area’s worst-hit countries, El Pais newspaper reported.
“If Europe’s package that includes renewable energy is executed, the solar industry may rebound in a big way,” Han Byung Hwa, an analyst at Hyundai Securities Co., wrote in a report dated yesterday. LDK may cancel or delay its plan to expand polysilicon capacity, benefiting rivals including OCI, the analyst said.
Solar manufacturers from China to the U.S., such as First Solar Inc., are under pressure because oversupply has depressed prices. Since September, the spot price of polysilicon has fallen by a third, wafers are 35 percent lower and silicon-based solar panels are 25 percent cheaper, Bloomberg New Energy Finance data shows.
Japan will require power utilities to pay above-market rates for electricity generated from renewable energy sources such as solar and wind, based on recommendations announced by a government panel.
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