Concerned about the solar double reverse

Chinese Ministry of Commerce announced on its website said the investigation began since November 1, 2012, should normally be in the November 1, 2013, the end of the investigation, will the anti-dumping and countervailing duty investigations, the EU imports of solar grade polysilicon, "specialcase "may be extended to 2014, May 1. Above investigation polysilicon products for the United States and South Korea's anti-dumping investigations and anti-subsidy investigations against U.S. polysilicon (above investigation since July 20, 2012) with expand. Meanwhile, the Commerce Department confirmed the submission of investigation application on behalf of the Chinese polysilicon industry enterprises the same with the July survey application for the GCL (3800.HK rating is neutral), LDK Solar LDK (LDK, not covered), a large new energy (DQ, not covered) and Luoyang in silicon.

    Analysis.

    The Commerce Department did not disclose the size, scope or time of a potential tariff. Ministry of Commerce, in addition to not further delineate the time frame given in addition to the 20-day the respondent window period. We note that the EU anti-dumping investigation of Chinese crystalline silicon PV modules and critical components on September 6, 2012 (see our report published on September 6, 2012 China: Clean Energy: Solar: The EU officially launched against China PV companies of anti-dumping investigations).

    Impact of investments.

    Although the Commerce Department's move further shows that the Chinese government supports the efforts of the struggling solar industry, but because in 2011 more than 60% of Chinese exports of solar products sold in the European market, the PV trade friction between China and the EU increasingly upgrade possible for the Chinese solar bring greater challenges. Given the possibility of the polysilicon imported to the United States, South Korea and the European Union tariffs, compared with global peers enterprises GCL production of large-scale, low-cost domestic polysilicon producers may benefit in the short term (increase in sales). Customs issues and what impact will the demand for solar products outside China in the medium term, as well as how the final result of the global solar capacity in China redistribution still greater uncertainty.