Solar-stock gains after the U.S. Commerce Department revised its duties on Chinese imports may be “short lived” because investors are ignoring looming trade issues in other countries, an analyst said.
The Bloomberg Global Large Solar Index (BISOLAR) of 17 companies that make solar panels and materials, increased 0.9 percent, the most in a week. JinkoSolar Holding Co. (JKS:US), a Chinese panel company rose 8.6 percent at the close in New York, its biggest increase since Oct. 4. Canadian Solar Inc. (CSIQ:US) gained 3.4 percent and First Solar Inc. (FSLR:US) increased 3.2 percent.
The U.S. issued anti-dumping duties of as much as 250 percent on solar products imported from China yesterday, after ruling in May that they sell products below cost.
The stock gains fail to consider a similar trade dispute in Europe that may also result in tariffs on Chinese imports and the potential for retaliatory action in China, Mark Bachman, an analyst at Avian Securities Inc. in Boston, said in an e-mail today.
“Both of these could have negative implications to the supply chain, and could increase manufacturing costs,” Bachman said.
“The duty structure has been set and remains punitive,” he said. “It could have been worse, but the situation certainly did not improve.”
To contact the reporter on this story: Justin Doom in New York at email@example.com
To contact the editor responsible for this story: Reed Landberg at firstname.lastname@example.org