GCL-Poly Energy Holdings Ltd. surged after China announced plans to impose duties of as much as 57 percent on polysilicon from the U.S. and South Korea.
The stock of the world’s biggest polysilicon maker rose 4.8 percent to HK$1.97 as of 11:09 a.m. in Hong Kong trading after earlier gaining as much as 5.3 percent. The benchmark Hang Seng Index fell as much as 0.6 percent.
Importers of the raw material to make solar panels must begin paying the duties on July 24. The highest rate was imposed on companies including the U.S. units of Renewable Energy Corp ASA, while the lowest were placed on South Korea’s OCI Co. at 2.4 percent, according to a statement on the Chinese commerce ministry’s website yesterday.
“The decision will boost demand for domestic polysilicon makers and their price will also increase,” Wang Minnan, a Beijing-based analyst at Bloomberg New Energy Finance, said by phone. More than half of Chinese demand for polysilicon was met by imports before the ruling, Wang said.
Daqo New Energy Corp., a Chinese producer of the commodity, rose 9.9 percent to close at $10.54 in New York yesterday, bringing this year’s gain to 32 percent.
Chinese polysilicon makers led by GCL-Poly and Daqo increased production in the second quarter as imports declined. ReneSola Ltd. earlier this month revived production at its Sichuan polysilicon plant, which has an annual capacity of 10,000 metric tons.