Trade Resources Industry Views EU and The China Government Have Reached a Consensus About Minimum Prices

EU and The China Government Have Reached a Consensus About Minimum Prices

The European Union (EU) and the China government have reached a consensus about minimum prices and an annual quota to be set on PV modules imported from China to resolve anti-dumping disputes, and this is expected to benefit Taiwan-based makers of crystalline silicon solar cells, according to some of the makers.

The lower price limits of EUR0.55-0.57(US$0.73-0.76)/W and the annual import quota of 7GWp to be set by EU are significantly lower than EUR0.50/W and 10GWp, respectively, proposed by the China government, implying that the latter has yielded to reach a settlement, the sources pointed out.

Compared with the average price of EUR0.46/W recognized by EU as dumping, EUR0.55-0.57/W is equivalent to anti-dumping tariff rates of 20-24%, higher than the temporary anti-dumping rate of 11.8% imposed on June 6, the sources indicated. Therefore, the lower price limits will reduce the price competitiveness of China-based PV module makers in the Europe market and relatively increase that for Taiwan-based solar cell makers which are the main suppliers of Europe-based PV module vendors, the sources noted.

In addition, demand for PV modules in Europe in 2013 is estimated at 10-12GWp, therefore the import quota of 7GWp will leave room for 3-5GWp for Europe-based PV module makers and overseas suppliers, with large business opportunities for Taiwan-based solar cell makers, the sources pointed out.

With annual potential demand for 3GWp from the Europe market and that of 6GWp from the US and Japan markets, Taiwan-based solar cell makers will have total potential orders for 9GWp a year, exceeding their total annual production capacity of 8.5GWp, the sources indicated.

According to China-based Jinghua Times, the import quota will be favorable for large PV makers because they are expected to share most of the quota via better brand reputation and government arrangements. In contrast, small makers will struggle to compete and therefore many of them will either shut down or be combined with large makers, the paper indicated. As a result of such market reshuffling, there will possibly be only 5-6 polysilicon makers and 4-5 solar cell and PV module makers, and more providers of design and engineering services for PV system installations, the paper pointed out.

Source: http://www.digitimes.com/news/a20130728PD200.html
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