EU polysilicon anti-dumping investigation is still continuing

Abstract The Ministry of Commerce recently released the final decision on the anti-dumping investigation of solar-grade polysilicon imported from the United States and South Korea. The final tax rates are largely in line with the preliminary ones, which has led to mixed reactions within the new energy sector. Industry experts suggest that the imposed duties are not stringent enough to significantly protect domestic polysilicon producers. Meanwhile, polysilicon prices have been on an upward trend, but some analysts warn that as more companies resume production, overcapacity could return, leading to a potential price drop.

The investigation was initiated by the Ministry of Commerce on July 20, 2012, targeting solar-grade polysilicon imports from the U.S. and South Korea. In mid-July last year, the ministry issued Announcement No. 48, stating that the products were indeed dumped and had caused serious damage to the domestic industry. This marked a critical step in the ongoing trade dispute.

According to the final ruling, the anti-dumping duties imposed on U.S. companies are notably higher, ranging from 53.3% to 57%. In contrast, South Korean firms faced much lower rates, with OCI Co., one of the most aggressive players, only facing a 2.4% duty. Domestic polysilicon manufacturers expressed concerns that these low rates would fail to prevent continued market flooding from foreign competitors. The final decision maintains the preliminary tax rates, and the enforcement period will last for five years, starting from January 20, 2014.

Meanwhile, the anti-dumping probe into solar-grade polysilicon from the European Union is still ongoing, with the deadline set for May 1 this year. As global trade tensions persist, the impact on China’s photovoltaic industry is expected to remain significant.

Recently, the China Chamber of Commerce for Import and Export of Mechanical and Electrical Products warned that some U.S. PV companies may take further actions against Chinese exports, including targeting the Taiwanese OEM battery supply chain. This move aims to avoid what is known as “double dumping.” Similar strategies are reportedly being considered by EU firms as well. With such challenges ahead, the export outlook for China's solar products remains uncertain and challenging.

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