Solar stocks have been riding high and the recent deal between the EU and China has further bolstered a recovering sector, but analysts warn that a bull market, spurred by speculation, can be a fragile thing.
Further details regarding the trade deal between the EC and China are expected to be announced on Monday. The EC and China reportedly agreed on 56 euro cents per watt.
Chinese panels are increasing in price due to the EU’s anti-dumping tariffs. As a result, high-quality modules from South Korean and Western suppliers are becoming more competitive, says IHS.
The European Commission and China continue to wrangle for a compromise in the ongoing trade dispute over dumping prices on imported Chinese PV products. Insiders expect an agreement this week.
Module and inverter trader says trade war and consequent lack of Chinese imports is closing the price gap between German and Chinese products. But spot market availability of fire-sale modules can skew figures, warns analyst.
U.S. and South Korean polysilicon manufacturers will face anti-dumping import tariffs in China of up to 57% beginning July 24. U.S. producers REC and Hemlock face the highest rates.
The EU and China are apparently continuing intensive negotiations on a possible settlement of the PV product trade dispute. EU trade commissioner Karel De Gucht and Chinese Commerce Minister Gao Hucheng are due to discuss the matter later this week. Moreover, the EU has reportedly offered China a compromise.
Part of Europe’s PV industry is increasing the pressure on the European Commission’s punitive import duties against Chinese solar products. The CEO of German module manufacturer Solar-Fabrik is demanding the end of the anti-dumping tariffs on Chinese cell imports in an effort to ensure the competitiveness of the European production sector.
The European Commission appears to be sharpening its focus on Germany’s Renewable Energy Act due to possible violations of European Union competition regulations. Energy-intensive German companies that have profited from incentives could be forced to pay back millions in back payments, according to German weekly Der Spiegel.
Germany’s Economics Ministry has reiterated that China will not impose punitive duties on imports of polysilicon from the European Union after conflicting reports on the trade issue.
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