Bleak short-term future awaits PV stock: analysts

One of the uncertain factors is the European Union's investigation into possible dumping practices by Chinese operators, causing concerns over a decline in both shipments and price.

If Chinese operators were found guilty of dumping, they may face an increase in import duties retroactive to the time when the dumping practices began. Such concern has led to declining August sales for Taiwan PV manufacturers, which have close ties with Chinese operators.

Another disincentive facing Taiwan manufacturers is the fact China plans to offer subsidies to support 12 of its own PV makers.

These uncertain factors may force Taiwan PV manufacturers to cut shipments to respond, said analysts, who cited as an example Solartech Energy, whose September sales are expected to decline.

According to Taiwan operators, cutting shipments is a way to protect themselves in the midst of weak demand in the market. “Once the European Union makes a ruling in November, the murky situation currently seen in the market may be over,” said Lu Ming-kuang, chairman of Sino-America Silicon Products, which makes PV wafers.

Lin Ho-lung, chief executive of Green Energy Technology, said the situation will improve after the weeklong Oct. 1 holiday break in China.

In the meantime, investors are taking a wait-and-see attitude in the market, where PV stocks showed volatility yesterday. The correction took place despite a major PV exhibition that is set to take place in Taipei tomorrow, where manufacturers will display their latest products.

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