China’s photovoltaic (PV) expects mild recovery

China’s dampened photovoltaic (PV) market has shown signs of heating up thanks to policy help and rising demand, the China Securities Journal reported on Friday.

Over 75 percent of 26 solar cell producers listed on the two bourses on the Chinese mainland posted profits in their 2013 annual financial reports or made optimistic forecasts in preliminary statements as of March 12.

By the end of 2013, around 13 enterprises had resumed production of polycrystalline silicon after a global price plunge shut down 37 of the 43 producers in the first half of last year, statistics from the China Nonferrous Metals Industry Association said.

Analysts attributed the moderate recovery to the government’s support, including subsidies on grid-connected PV power and sales growth at home and abroad.

The PV sector will continue to recover in 2014, with global demand to grow by 20 to 30 percent, driven by markets in China, Japan and the United States, analysts predicted.

However, China should be aware of stepping onto the old path of PV overcapacity, as resumed production is likely to trigger a new round of price declines due to massive supplies.