OCI Gains Most Since September on Recovery Bets: Seoul Mover
OCI Co. (010060), South Korea’s biggest polysilicon maker for solar cells, rallied the most in three months in Seoul trading on speculation demand from China and the U.S. will help the solar industry to recover.
Shares of OCI added 3.8 percent to 164,500 won at the close on the Korea Exchange, the steepest gain since Sept. 14. The benchmark Kospi index added 1.4 percent.
Chinese solar manufacturers jumped yesterday in New York after separate reports indicated China’s government is adding financial support for an industry struggling with falling prices. Developers installed 684 megawatts of solar panels in the U.S. in the third quarter, 44 percent more than a year earlier, according to a statement from the Solar Energy Industries Association.
“Expectations of a recovery on demand from China and the U.S have driven the share-price gain,” Choi Ji Hwan, an analyst at NH Investment & Securities Co., wrote in a report today. “The industry will gradually come out of the bottom.”
China allocated 13 billion yuan ($2 billion) in subsidies for domestic solar companies this year, the Xinhua News Agency reported yesterday. The Shanghai Securities News said officials may double their target for solar installations. The Ministry of Science and Technology confirmed subsidies for more than 100 developers including Yingli Green Energy Holding Co.
LDK Solar Co. (LDK), the world’s second-largest maker of solar wafers, and panel maker Yingli both surged at least 15 percent in New York yesterday.
Falling product prices led LG Chem Ltd. (051910) to delay its polysilicon investment plan, while Hankook Silicon Co. filed for receivership with the Seoul Central District Court.
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