The World's #1 Renewable Energy Network for News, Information, and Companies.

China Won't Impose Tariff on Imported Polysilicon, Analyst Says

China Won't Impose Tariff on Imported Polysilicon, Analyst Says

China, the biggest producer of solar products, probably won't impose tariffs on imported polysilicon, the main raw ingredient in panels that turn sunlight into electricity, according Aaron Chew, an analyst with Maxim Group LLC.

China is expected to rule Feb. 20 on complaints from domestic polysilicon producers that imports from Europe, South Korea and the U.S. are being sold in the country below cost, Chew said in a research note today.

The complaint is part of an escalating solar trade fight pitting China against the U.S. and Europe. Chew said a polysilicon tariff would be a retaliation for duties the U.S. imposed on Chinese solar products in October and Europe is considering. It may hurt Chinese Companies that make polysilicon-based cells and panels more than it would benefit the polysilicon suppliers.

Imposing a tariff on imported polysilicon “would raise production costs and further squeeze the economics of module manufacturing, already under pressure from severe price declines,” Chew said in the report.

China began investigating in November whether foreign polysilicon manufacturers, which supply 75 percent of the material worldwide, were dumping their product in China.

The world’s biggest polysilicon producer is China-based GCL-Poly Energy Holdings Ltd. The next four are South Korea’s OCI Co., Hemlock Semiconductor Corp. from the U.S., Germany’s Wacker Chemie AG and Norway’s Renewable Energy Corp., according to Bloomberg New Energy Finance.

Polysilicon Rally

GCL-Poly shares have gained 36 percent this year, and Daqo New Energy Corp., another Chinese producer, is up 61 percent. Chew said the rally is based in part on speculation that a tariff will boost sales and has probably “gotten ahead of itself.”

Prices for solar panels dropped 22 percent in the past year as demand slowed. That will make it hard for Chinese manufacturers to absorb higher prices for polysilicon, said Jeffrey Osborne, an analyst at Stifel Nicolaus & Co. in New York.

“Given the inventory of finished solar modules around the globe and manufacturing oversupply,” polysilicon duties would “definitely crimp” any potential margin expansion of solar wafer, cell and module producers near term, Osborne said today in an e-mail.

“They are unlikely to be able to raise their prices to offset the higher silicon prices,” he said.

Chinese polysilicon companies don’t produce enough to supply the entire country, especially if the government follows through on efforts to boost solar installations to 10 gigawatts this year, Osborne said.

Copyright 2013 Bloomberg

Lead image: China map via Shutterstock

RELATED ARTICLES

Floating solar panels

Got Lots of Sun, Not Enough Water? There's a Solar Panel for You

Ben Sharples and Justin Doom, Bloomberg From a distance, they almost look like a massive mosaic swimming-pool cover. They are photovoltaic panels, half-millimeter thick silicon wafers that are erected over reservoirs. Their function: Generate power while also co...

Listen Up: Charging Your Electric Vehicle

The Energy Show on Renewable Energy World Electric vehicles are great: they’re affordable, great for the environment and low maintenance. And where electric rates are low — or if you have rooftop solar power — EVs are cheaper to drive per mile than gas-powered car...
Google

Greenpeace Raises Pressure on Internet Companies to Go Renewable

Andrew Burger, Contributor For at least four years, Greenpeace has been raising public awareness and putting pressure on the world's largest data and cloud computing center providers to fuel their operations with clean, renewable power. In May, Gree...
A biogas plant concept from Weltec Biopower

Europe Versus Renewable Energy?

Tildy Bayar, Contributor Wednesday morning’s 'Regulation and the Marketplace' panel discussion at POWER-GEN Europe in Amsterdam got off to a lively start with a presentation from Randy Mott, president of Polish biogas- and geothermal-bas...

CURRENT MAGAZINE ISSUE

Volume 18, Issue 3
1505REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

FEATURED PARTNERS



EVENTS

ImagineSolar | Advanced Lab Day: Solar PV Design & Installation (Au...

Advanced Lab Day: System Design & Installation  $195 – 8 ...

ImagineSolar | Advanced Online: Solar PV System Design & NABCEP Exa...

Advanced Online Solar PV System Design & NABCEP Exam Prep $695 &ndas...

Bankability and Support Mechanisms for Renewable Energy Projects

Setting appropriate legal and regulatory frameworks is essential for the...

COMPANY BLOGS

Three Strategies to Reduce Customer Acquisition Costs

When facing soft costs, many solar installers often think of the costs s...

8 Tips For A Stellar Proposal

The way in which you frame your product or service in a proposal can mea...

7 Tips For Active Listening

Selling efficiency is a two-way street: You can’t just bombard you...

SOCIAL ACTIVITY

Tweet the Editors! @megcichon @jennrunyon

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS