LDK Solar Co., the world’s second-largest maker of polysilicon wafers for solar cells, posted its biggest four-day drop in more than three years on concern that revenue will fall due to U.S. tariffs on Chinese solar imports.
LDK, based in Xinyu, China, fell 4.4 percent to $1.73 at 11:07 a.m. in New York. Its American depositary receipts have plunged 43 percent since May 23, the biggest four-day decline since February 2009. Each ADR is worth one ordinary share.
The U.S. Commerce Department announced preliminary anti-dumping tariffs of 31.18 percent on its products May 17. The agency will make a final decision in October on the tariffs, which range from 31.14 percent to 250 percent for different Chinese companies.
LDK’s slump is driven by “the negative sentiment of everything to come out of China” after the tariff decision, Theodore O’Neill, an analyst with Wunderlich Securities Inc. in New York, said in a telephone interview today.
Peng Xiaofeng, LDK’s chairman and chief executive officer, said the duties will be “a challenge for us,” Xinhua News Agency reported May 25.