Chinese solar firms surge in U.S. trading on reports of looming output cuts

Chinese solar shares listed in the U.S. rose in pre-market trading Tuesday, led by Daqo New Energy (NYSE:DQ) +4.7% and JinkoSolar (NYSE:JKS) +1.1%, after local media reported a major firm was in talks with peers about an industry-wide output cut in a bid to support prices.

Shares of Tongwei Co. rose as much as 10% during morning trading in Shanghai.

Securities Times reported, without naming any companies, that a leading polysilicon producer had “communicated” with several other firms about cutting supply.

It’s unknown if the production pause would be implemented, the newspaper said.

China’s solar manufacturers have posted losses as President Donald Trump’s trade war added pressure to a sector already struggling with low prices and U.S. export tariffs.

Relevant stocks in focus: Nextracker (NXT), Sunrun (RUN), SolarEdge Technologies (SEDG), FTC Solar (FTCI), Enphase Energy (ENPH), First Solar (NASDAQ:FSLR), Sunnova (NOVA), Maxeon Solar Technologies (MAXN).