Solar stocks fall as Roth analyst highlights customs problem (NYSEARCA: TAN)

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Solar inventory (NYSEARCA:TAN) posted large losses on Wednesday after an industry analyst said new US powers to restrain imports linked to China’s Xinjiang region were used to stop the products of a “major solar company“, reports Bloomberg.

Several sector names are posting significant losses, including (NASDAQ: SHLS) -14%(NASDAQ:ARRY) -11%(SPWR) -10.3%(FTCI) -9.5%(MAXN) -8.7%(FLOOR) -7.6%(CSIQ) -6.3%(SEDG) -5.9%(ENPH) -4.3%(JKS) -3.8%; First Solar (FSLR), which has a manufacturing base in the United States, -1.5%.

Roth Capital analyst Philip Shen reportedly said in a research note that US Customs and Border Protection had detained products from the public company, demanding documentation of the source of quartzite in the original products, under the Uyghur Forced Labor Prevention Law.

Providing evidence on the source of raw materials would mark an escalation in the controls applied to manufacturers to prove that their supply chains are free from links to alleged labor abuses in Xinjiang.

“Our audits suggest that while this can be resolved, it is not trivial and it may take time” for companies to be able to provide the necessary evidence, Shen wrote, viewing the development as “an additional negative for the American solar industry“.

Earlier Wednesday, First Solar said it would not build a new plant in the United States, citing uncertainties over trade policy and tax incentives.

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