Chinese enterprises counterattack: launching a polysilicon double-reverse investigation against the EU

On October 31, several domestic polysilicon executives confirmed to reporters that China's polysilicon enterprises submitted a complaint to the Chinese Ministry of Commerce in August, requesting a “double-reverse” (counter-subsidy, anti-dumping) investigation on polysilicon produced in the EU. A major breakthrough was achieved. "The filing procedure has already started and the external announcement is about to be released." The “double-reverse” complaint was jointly initiated by four of China's largest polysilicon companies: Jiangsu Zhongneng Silicon Industry, Jiangxi Saiwei LDK Photovoltaic Silicon Technology, Luoyang Zhongsi High-Tech, and Chongqing New Energy. From January to June 2012, the total output of these four companies was 28,484 tons, accounting for 79% of the total domestic production of 36,230 tons. In 2011, China imported 14,643 tons of polysilicon from the EU. The China Nonferrous Metals Industry Association Silicon Industry Branch data showed that the average price was 60 US dollars/kg, and the total value exceeded 5.5 billion yuan. Earlier on September 6, the European Commission officially launched an anti-dumping investigation on crystalline silicon photovoltaic products originating in China. In 2011, China exported 20.4 billion US dollars of photovoltaic products to Europe, directly employing more than 500,000 people, driving indirect employment. The population exceeds 1 million. "In the second quarter, there are still two or three polysilicon enterprises in China that can be fully produced, but no one is now full of production." Solar market research firm Solarbuzz senior analyst Lian Rui described the US, South Korea, and EU polysilicon enterprises to the Chinese market. The price strategy, combined with the flat market, has reduced the number of domestic polysilicon companies currently able to start to single digits. Polysilicon from the European Union shocked the China Nonferrous Metals Industry Association Silicon Industry Branch. Three of the seven polysilicon companies listed on the A-share market have stopped production. From a national perspective, at present, among the 43 polysilicon enterprises that have been put into production, only 7-8 companies are still in production, and the rest have closed production lines, and the yield is over 80%. At the beginning of 2012, four companies as applicants were still able to start construction. By the second quarter of 2012, two of the two companies that applied for it – Luoyang Zhongsi and LDK LDK were nearing a complete shutdown. “A decade of unprecedented difficulties.” A polysilicon executive expressed the feeling that due to the impact of foreign polysilicon dumping, domestic polysilicon enterprises were in a state of suspension of production and semi-discontinuation, resulting in an increase in inventory and “financial turnover difficulties”. No loans for new projects, or even tightening loans for enterprises that have stopped production, which has affected the industry to invest hundreds of billions and affect tens of thousands of employed workers. In 2008, China imported 3,932 tons of polysilicon from the EU, but it rose to 14,643 tons in 2011 and increased to 3.7 times in three years. The aforementioned polysilicon executives said that since 2012, PV downstream enterprises in the EU countries have basically stopped production, and their raw materials are 100% exported. In addition, the new production line of WACKER in Germany will be put into operation before the end of 2011. In 2012, the total output of polysilicon in the EU will exceed 20,000 tons. "The extra output can only be digested by the Chinese market." Customs statistics show that in Germany alone, the total amount of polysilicon exported to China in the first nine months of this year reached 16,046.795 tons, exceeding the total export volume of the EU last year. From the price point of view, the price of German exports in September was US$26.8/kg. , lower than the price of 35.5 US dollars / kg at the beginning of the year, has decreased by 22.3%. Lian Rui stressed that Germany only exported 1,213 tons to China in January, and it was just 1,567 tons in August, but it increased to 3,991 tons in September, an increase of more than 255%. "It may be affected by the double-counter complaint submitted by Chinese companies in August. , accelerate the export to the Chinese market." In the complaints submitted by the four enterprises to the Ministry of Commerce of the People's Republic of China, the reporters saw the impact of transportation, insurance, customs duties, value-added tax, warehousing and other aspects during the one-year investigation period from July 2011 to June 2012. The dumping margin of the products under investigation originating in the EU is 11.47%. According to the demands of the four companies, there are 11 EU polysilicon enterprises involved in low-cost dumping, including 5 in Germany, 4 in Italy, and 1 in France and Spain. “It’s not just low-priced dumping, but European companies such as WACKER have received a number of government subsidies and policy loans over the past 10 years, making them competitive in terms of cost in the face of Chinese polysilicon companies. The reason for the subsidy lawsuit.” The executive said that in the case of WACKER, it has received more than 400 million euros in government subsidies in the past 10 years, and obtained 3 pennies from European banks in 2002, 2008 and 2009. Policy loans, the total loan principal is 850 million euros. Retrospective period With the development of China's photovoltaic industry, the domestic market demand for solar grade polysilicon continues to rise. In 2008, the apparent consumption was 16,544 tons, and in 2011 it was 146,131 tons, an increase of 783% in four years. "The current domestic battery component enterprises do not exceed 10,000 tons / month, and the four companies currently applying for the application are fully available, and these four companies are also one of the top ten polysilicon enterprises in the world." The aforementioned PV executives said. For example, the current price offered by domestic manufacturers to the market is 17 US dollars / kg, "has been fully on the market", the current average price of imported polysilicon is 26 US dollars / kg, the price of some long-term orders is higher to 35-40 US dollars / kilogram. If it is not (European Union enterprises) dumping in the spot market, domestic enterprises can completely compete with foreign companies. "After the double-reverse, we will not raise prices and still be in line with international prices." If the double-anti-copy case of the EU polysilicon enterprise is completed, this will become another important measure for the foreign polysilicon industry after July. On July 20, the Ministry of Commerce decided to conduct anti-dumping investigations on polysilicon imported from the United States and South Korea, and conduct countervailing investigations on polysilicon imported from the United States. The reporter also noted that the import of polysilicon from China and South Korea in July and August has not decreased. In the United States, for example, China imported 7,124 tons of polysilicon in August, which is equivalent to July, but the proportion of US products rose from 41.2% to 45.5%. "But from the data of September, the import of polysilicon in September was 8,719 tons, a record high, and Germany accounted for nearly 50% of the import ratio, indicating that the proportion of the United States and South Korea has dropped very badly." Lian Rui pointed out. The aforementioned executives told reporters that after the investigation of the US-South Korea polysilicon double-reverse investigation, the Ministry of Commerce observed the import surge in July and August according to the situation raised by the company. In September, the Ministry of Commerce made a retrospective levy, "October The impact on US and South Korean companies began to appear." "Since September, the EU polysilicon companies have rushed to export to China, so we immediately requested to submit a retroactive application after filing the case to block the gap period during the investigation. It takes a three-month investigation period to go to the preliminary ruling," the executive said. Some Chinese polysilicon executives believe that the price of polysilicon has dropped from the highest point of $300/kg in 2008 to the current $17/kg. Chinese companies have contributed a lot, "and started with less than 10% of the domestic market share. In 2011, about 50% of the market share, the company is demanding fair competition. The executive said that the Ministry of Commerce also approved the company's appeal through the investigation, "in September, it accepted the anti-dumping application for the EU polysilicon, and accepted the anti-subsidy application in October."

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