Solar inventory (NYSEARCA:TAN) are weaker across the board on Friday after Bloomberg reported that The Chinese government is preparing to intervene to halt polysilicon prices from 10-year highs, hurting demand for solar panels of giant large-scale solar farms.
It’s unclear what the government could do to rein in soaring prices, but similar efforts have urged natural resource miners, from coal to lithium, to rein in the escalating costs of their production.
Daqo New Energy (NYSE: DQ) leads the decliners, -7.7%but losses are widespread: (FTCI) -8.9%(SHLS) -seven%(SUN) -6.9%(MAXN) -6%(ENPH) -3.9%(SPWR) -3.7%(FLOOR) -3.7%(CLASSES) -3.6%(NOVA) -3.5%(SEDG) -2.4%(JKS) -1.7%(CSIQ) -0.5%.
Even First Solar (FSLR), whose manufacturing base is in the United States and not in China, -1.8%.
Despite higher PV prices, Chinese solar installations more than doubled between January and June and will likely break previous records for the full year, according to the China Photovoltaic Industry Association.
Solar stocks fell last week after Sen. Joe Manchin said he would not support key climate provisions in the budget reconciliation bill.