OCI Co., South Korea’s biggest maker of polysilicon used in solar panels, rallied the most in eight months in Seoul stock trading after prices of the material rose.
OCI climbed 6.9 percent to 179,000 won at the close on the Korea Exchange, its steepest gain since May 2. The stock is the best performer on the MSCI Asia Pacific Index today.
Prices of polysilicon climbed to $15.38 per kilo, its first weekly increase in 11 months, from $15.35, SK Securities Co. said in a report today, citing data from research firm PV Insights. The price had been falling due to oversupply.
“While the increase is marginal, I think it’s worth noting because this could be an indicator of the future price direction,” Sohn Ji Woo, an SK Securities analyst, wrote in the report. “The recent spot price decline was irrational.”
Other solar-related companies also advanced, with Hanwha Chemical Corp. rising 5.5 percent and Nexolon Co. jumping by the daily limit of 15 percent.
Falling product prices led LG Chem Ltd. to delay a polysilicon investment plan, while Hankook Silicon Co. filed for receivership with the Seoul Central District Court.