LDK Solar Co. led a drop in Chinese solar stocks in New York after a French materials supplier said the companies are reducing orders and Citigroup Inc. signaled Germany may cut industry subsidies by at least 20 percent.
China’s success in wresting control of the solar industry is erasing an advantage for U.S. suppliers led by First Solar Inc., which use a rival technology supported with $5.5 billion in government loan guarantees.
Trina Solar Ltd. led declines in Chinese solar stocks traded in the U.S. as the company reported a larger-than-expected net loss and as Germany plans to cut subsidies for the industry, dimming the outlook for sales.
OCI Co., the world’s second-biggest maker of polysilicon used in solar panels, fell the most in more than three months in Seoul trading after Citigroup Inc. said Germany may cut industry subsidies by more than 20 percent.
China’s Suntech Power Holdings Co. , the world’s largest maker of polysilicon solar-power modules, fell the most in two months in New York after Citigroup Inc. recommended selling the stock and said next year’s earnings may miss analysts’ estimates.