Shares in Danish wind turbine manufacturer Vestas went down Friday morning by 4.2 percent to DKK 404 and is thus on the bottom line in the Danish elite index C25.

This occurred in connection with the Q3 report released by German-Spanish competitor Siemens Gamesa. The company reported increasing costs within its US division due to extra tariffs on steel imports.

However, the higher costs have made it difficult for the company to send it onwards to customers in the form if higher sales prices, creating a risk of continued price squeeze on wind turbines.

Vestas' investors are taking note of these conditions, evaluates Nikolaj Holmsgaard, equity sales and trading broker at Oslo-listed Nordic investment bank AGB Sundal Collier.

"When we saw the figures, we though actually thought they looked fine. Nothing really pulled in the one or the other direction. It was pretty much in line with market expectations," said Holmsgaard, adding:

"One would initially think that if steel prices were to go up, attempts would be made to pass on some the higher costs to clients. In respect to that, Vestas' CEO said in a teleconference that they would have difficulty in successfully passing on the costs related to higher steel prices."

The question of price development in the wind turbine industry has concerned investors and analysts over a longer period. Last week, optimistic announcements were made in connection with the most recent quarterly reports from General Electric (GE), which also produces wind turbines.

Analyst: GE's price announcement may be an important sign

The US-based manufacturer is certainly still experiencing challenges with squeezed market prices, but those are beginning to moderate, according to GE.

As to how Vestas is experiencing the price squeeze, one will have to wait until August 15 for more elaborate answers. at which time Vestas will publish its Q2 financial statement.

English Edit: Daniel Frank Christensen & Lena Rutkowski

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