(May 7): Plunging prices for solar panels that have slashed profits across the sector don’t have much room to fall any further, according to the chairmen of two of the industry’s biggest firms.

The current slump is “irrational” and there’s only a small probability it will continue, Jinko Solar Co chairman Li Xiande said in a joint presentation hosted by the Shanghai Stock Exchange. Li answered written questions from investors at the event on Tuesday (May 7) along with executives from other firms, including Trina Solar Co and CSI Solar Co.

The companies are trying to turn a corner after solar manufacturers saw profits vanish as a wave of new factories that were aimed at capturing a growing market came online in the past year. Instead, the new supply has overwhelmed demand, sending panel prices to record lows and annihilating margins.

“The price of photovoltaic modules is currently at a low level, and there’s limited room for further decline,” Trina chairman Gao Jifan said at the presentation.

Solar module prices are at about half the level they were in March 2023, BloombergNEF data show. China, by far the world’s largest solar market, is facing grid constraints that may slow new additions. Installations in March were 32% lower than the previous year, according to the National Energy Administration.

Jinko still expects global demand for panels to rise by 20% this year, helping to rebalance the market. The company has already increased its production schedule in the second quarter compared to the first and is operating its most advanced production lines at high rates, Li said.