Four PV companies dissatisfied with the anti-dumping tax rate of South Korea

The China Nonferrous Metals Industry Association Silicon Industry Branch (hereinafter referred to as the China Nonferrous Metals Branch) urgently held an emergency meeting on the 30th to discuss the impact of China on the US and South Korea's polysilicon dual-inverter and its next steps.

"Double-countermeasures are weak, and polysilicon cannot be revived." On July 31, Lu Jinbiao, deputy general manager of Jiangsu Zhongneng Silicon Industry Co., Ltd. (hereinafter referred to as Zhongneng Silicon Industry), expressed so much to the reporter. Zhongneng Silicon is a subsidiary of GCL-Poly, which is China's largest polysilicon company.

On July 18, 2013, the Ministry of Commerce of the People's Republic of China decided to adopt temporary anti-dumping measures on imports of solar grade polysilicon from the United States and South Korea starting from July 24, 2013. Among them, the dumping margin of imported polysilicon from the United States was 53.3% to 57%, and the dumping margin from South Korea was 2.4% to 48.7%.

In Lu Jinbiao's view, the anti-dumping margin against South Korea is too small, especially the OCI tax rate that accounts for 90% of Korean polysilicon exports to China is only 2.4%. "This may set off a new round of export frenzy for China's polysilicon."

Lin Ruhai, secretary general of the China Nonferrous Metals Division, said that in addition to the low tax rate in South Korea, the preliminary ruling on anti-dumping of polysilicon in the EU has not been introduced. The industry believes that the polysilicon "double reaction" against the EU can adopt a more active strategy to study the EU. For the two-step strategy of the PV Photovoltaics in China, we will take the initiative as soon as possible and use the initiative to promote negotiations and increase the weight for the negotiations.

In view of this, China's four largest polysilicon companies participating in the "double reverse" polysilicon complaint have jointly signed a letter to the Chinese Ministry of Commerce last week asking for an increase in punitive tariffs on South Korea, through the preliminary examination of polysilicon in the EU, and the inclusion of polysilicon. Processing prohibited catalogs.

Increase the tax rate of South Korea and pass preliminary

According to the latest customs statistics, China’s polysilicon imports amounted to 4,801 tons in June 2013, which was a significant year-on-year decrease of 30.5%, the lowest value since 2013; at the same time, the average price of polysilicon imports in China slightly increased to US$18.80 in June/ Kilograms, down 26.8% year-on-year.

Lu Jinbiao explained that the decline in polysilicon imports was due more to the fact that the polysilicon double counters were about to come out soon, which led to a reduction in the number of companies importing, but from the perspective of import prices, it still belongs to the category of dumping.

From the perspective of the import unit prices of the three countries in June 2013, Korea: US$ 17.6/kg, US: US$ 11.87/kg, and Germany: US$ 21.43/kg. Judging from the data of imports by country, imports from Korea, the United States, and Germany accounted for 86.9% of total imports, of which 959 tons were imported from South Korea, 993 tons from the United States, and 2,221 tons from Germany.

According to the reporter's understanding, due to the difference in electricity, production capacity, and process conditions, the production cost of polysilicon in China is between 22-29 U.S. dollars per kilogram, and the cost of the top five domestic manufacturers is around 19 U.S. dollars per kilogram.

“The tax rate given to the United States is appropriate, and South Korea is severely low, especially OCI.” Lu Jinbiao said that because the preliminary ruling mainly calculated the dumping margin based on the answer sheets submitted by the responding parties, it was subject to preliminary verification and verification at the scene. correct.

As an expert who has been infiltrating polysilicon for many years, Lu Jinbiao explained that South Korea and China's polysilicon companies have similar development trajectories, but their equipment investment and raw material costs are much higher than similar projects in China, such as polysilicon reduction and ingot furnaces that use US GT equipment. The cost of its publication is higher than that of similar companies in China. Of course, it is also higher than similar companies in Europe and the United States. Its dumping margin will not be lower than that of US companies.

"It is indeed a bit low for South Korea, with a tax rate of 2.4%. I don't think it's any different from it." Solar energy expert Liu Wenping told reporters. Regarding the preliminary anti-dumping duties imposed by the Ministry of Commerce on South Korean polysilicon companies, many insiders said that they were "too low."

A senior LDK official agrees that, in its view, OCI should impose more than 40% of punitive tariffs.

Import data from June showed that the amount of imported polysilicon from the United States and South Korea fell to varying degrees, while imports from Germany showed a slight increase. Reflecting from the other side, the polysilicon dual countervailing ruling was only directed against the background of the United States and South Korea. However, it has led to an increase in German imports.

Lu Jinbiao explained that the EU’s polysilicon, which accounts for one-third of imports, has no penalties, resulting in a low price for imports this year. At present, the recovery of polysilicon companies is still difficult.

However, with Sino-European PV price commitments negotiated on July 27, the double-sided polysilicon of the European Union faces variables. EU Trade Commissioner Carol De Gucht said on the 29th that China has agreed to start negotiations to end anti-dumping investigations on European wines; polysilicon raw materials produced and manufactured in Europe will be free of tariffs in China, and at least until next year4 month.

Before this, WACKER, Europe’s largest polysilicon company, has been lobbying Chinese component companies and the Ministry of Commerce for many times and demanding that they not impose punitive tariffs on them. According to the data, WACKER sells more than 60% of its annual polysilicon output to China. In 2012, 95% of the polysilicon exported by the EU to China was produced by WACKER.

Lu Jinbiao said that he has not heard that the Chinese Ministry of Commerce wants to cancel the information on the dual preliminary anti-polysilicon production of the EU. Calling customs data and WACKER's production costs, the company does have dumping behavior on the Chinese market.

Lose processing trade

Last week, the four Chinese polysilicon companies of the Ministry of Commerce of China were Jiangsu Zhongneng Silicon, LDK LDK PV Silicon Technology, Luoyang Zhongsi High-tech, and Chongqing Grand Brand New Energy.

Data show that in 2012 China's polysilicon production was 69,000 tons, while imports amounted to 82,800 tons, and the domestic polysilicon industry still relied heavily on imports. At present, the main market for polycrystalline silicon giants dominated by South Korea's OCI and WACKER companies is China, which accounts for more than 50% of the company's output.

Under the low price dumping of polysilicon in Europe, the United States, and South Korea, the vast majority of Chinese polysilicon manufacturers have stopped production. “There are only a few relatively large companies such as TBEA (7.99, 0.02, 0.25%), Sichuan Ruineng, Daxin Brand New Energy, and CSG which are currently resuming work. Other SMEs basically have not yet moved.” Solarbzz Advanced, PV Market Research Company Analysts described it as an example. The production quality of polysilicon in China has improved rapidly, and the cost of the company has also been reduced. Some small companies like Zhongneng and Yanhui can control the cost at US$18/ton, which is still international. Very competitive.

"On the other hand, the way of processing trade affects the effect of relief." Lin Ruhai said.

Data show that in June of this year, China's general trade method imported 1,305 tons of polysilicon, accounting for only 27%, processing trade and other means of importing 3,495 tons, accounting for as high as 73%, of which the feed processing trade still accounts for all modes 53 %the above.

Lin Ruhai analyzed that prior to the “double-anti” investigation, the proportion of processing trade was generally maintained at a level close to 50%. It was precisely because of the imminent anti-dumping measures that the import ratio of processing trade modes increased significantly.

Lu Jinbiao frankly stated that the processing of imports and exports to avoid tariffs naturally imposes no anti-dumping duties, and that polysilicon should be included in the list of forbidden materials processing in order to maintain the effectiveness of anti-dumping measures. “In fact, photovoltaic products such as imported polysilicon producing battery modules are not suitable for processing of incoming materials. Photovoltaic companies have only used the tax exemption policy for processing trade”.