(Bloomberg) — China’s solar manufacturers have just been through a bloodbath of an earnings season, but there are tentative signs the massive glut that’s plaguing the industry could be starting to ease.
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Longi Green Energy Technology Co. and five other leading solar firms racked up a combined $2 billion of losses in the first half after a frenzy of factory building over the last few years created excess capacity that’s driven prices to record lows. Some smaller companies have already been forced into restructuring, while rising trade tensions with the US and Europe may put exports at risk.
The financial pain looks to be planting the seeds for a turnaround, although a meaningful rebound is unlikely until next year. Goldman Sachs Group Inc. sees an imminent wave of factory closures that would help rebalance the market, while Morgan Stanley reckons equipment prices have already bottomed out.
Longi said it…
