Yingli (YGE), LDK Solar (LDK), Trina Solar (TSL), JA Solar (JASO), JinkoSolar (JKS) Facing Inventory Surge

Solar companies like JA Solar Holdings (NASDAQ:JASO),, LDK Solar Co. Ltd. (NYSE:LDK), Trina Solar Ltd. (NYSE:TSL), JinkoSolar Holding Co. (NYSE:JKS), and Yingli Green Energy (NYSE:YGE) could be under pressure over the next several months as slowing demand will push up inventory.

Research firm IHS iSuppli noted, “A major factor behind the solar inventory spike is the subsidy-driven nature of the PV market. Feed-in tariffs in many countries decreased on January 1, reducing government incentives to install new systems in early 2011. Furthermore, demand—usually lighter toward the beginning of any year—also is being depressed by unfavorable weather conditions prevailing in key European countries."

Assuming normal weather and business conditions, demand should rise in the second quarter.

All the solar companies listed above were trading in positive territory early in the session.