26 March 2012 07:53 [Source: ICIS news]
SINGAPORE (ICIS)--The imposition of ?xml:namespace>
The US Commerce Deparment on 20 March announced preliminary import duties of 2.9-4.73% on China-made solar panels, after it found that Chinese solar manufacturers had received unfair government subsidies.
A second preliminary decision is scheduled in May this year, according to Fitch Ratings in a statement.
“We believe the initial tariff duties…imposed by the Commerce Department are quite low and therefore represent more of a warning than a barrier that could significantly affect the Chinese companies' ability to compete in the US market,” the firm said.
The initial duties are unlikely to affect upstream polysilicon and wafer producers in
The cash flow generation of these downstream solar panel exporters in
The Coalition for American Solar Manufacturing expects the results of a second investigation in May to result in more restrictive duties and penalties, as anti-dumping margins are typically higher than subsidy margins, according to Fitch Ratings.
Meanwhile, consolidation within the solar industry in
“The winners will be those who can lower costs the fastest, and clearly the Chinese companies are in an advantageous position,” it added.
The US imported $2.8bn (€2.1bn) worth of solar cells and panels from China in 2011, surging from around $1.2bn in 2010, according to Fitch Ratings, citing industry estimates.
Chinese solar panel makers depend on exports for more than 90% of their earnings and the
($1 = €0.75)
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