While the European Union (EU) and China are still in negotiations toward settlement of the dumping of China-produced PV modules, Taiwan-based crystalline silicon solar cell makers hope that the EU imposes higher anti-dumping tariff rates than the tentative rate of 11.8% so that they can obtain increased orders from Europe, according to those Taiwan-based makers.
China has proposed to EU total shipments of 10GWp PV modules to Europe at EUR0.5 (US$0.65)/W, but most of first-tier Europe-based PV module vendors claim that prices should reach EUR0.58-0.6/W for them to break even in operation, the sources indicated. The gap in price is likely to lead to an impasse in negotiation between both sides and therefore the EU may impose final anti-dumping tariff rates higher than 11.8% in August 2013, the sources pointed out. With anti-subsidization tariff rates, combined punitive tariff rates are likely to exceed 20%, the sources noted. If settlement is reached, the condition must be China's acceptance of a minimum PV module price of EUR0.6/W, a situation still favorable for Taiwan-based makers, the sources indicated.
Possibly due to the difficulty in obtaining loans as the China government has enforced stringent financial policies, many large China-based PV module makers/vendors have suffered operating losses and decreased production, the sources noted. If reduced production continues, shipments from China may not be enough to meet total demand in Europe and the US and the shortage can be covered by Taiwan-based makers, the sources pointed out.
Due to growing demand in emerging markets, most Taiwan-based solar cell makers have seen capacity utilization rise to 80-90% since the second quarter of 2013, the sources indicated.
