As the “hardest hit†of trade friction between China and Europe and the United States, the photovoltaic industry has finally enjoyed a major positive after the twists and turns.
The European Commission (hereinafter referred to as the European Commission) recently announced that the EU anti-dumping and countervailing measures against PV products in China will be terminated after midnight on September 3, that is, normal trade will resume on September 4.
Affected by the news, the wind PV index continued to grow on the 3rd and 4th, rising from 1620.02 to 1632.17. Of the 43 stocks in the statistics, 31 rose on the 4th. Among them, Weiwei shares rose by 3.81%, and Jingrui shares rose by 3.02%. In addition, Zhengtai Electric and Zhonghuan shares were among the top gainers. The three shares of Weiwei, Tuo Xinneng and Tianlong Optoelectronics also had daily limit on the 3rd. In the Hong Kong stock market, the photovoltaic sector also rose sharply. On the 3rd, Comtec solar energy rose 45.83%, Sunshine Energy rose 15.45%, and GCL-Poly Energy rose 11.32%.
High double anti-tariff has caused bankruptcy of Chinese companies
This round of trade friction also dates back five years.
At that time, the European Commission announced that it would impose a maximum anti-dumping duty of 64.9% and a countervailing duty of up to 11.5% on solar panels imported from China starting in June 2013. In December of the same year, the minimum price commitment agreement (MIP) was implemented, requiring Chinese PV companies to sell solar PV products at a price higher than the minimum price, and the annual sales volume must be limited to a certain quota, and the manufacturers outside the agreement must pay a high amount. Double anti-tariffs. In the fall of 2015, Prosun, the European Photovoltaic Manufacturers Union, applied for the first expiration review of the commitment of the European Commission, resulting in an extension of MIP measures for 18 months until September 3 this year.
Yang Chao, a researcher at Great Wall Securities, said that the early European PV manufacturing industry and downstream demand market both maintained global leadership, but with the rapid development of China's PV manufacturing industry, the European PV industry is facing the impact and competition of China's low-cost PV products, so the European PV manufacturing giant Solarworld also applied for a double-reverse investigation of China's PV manufacturing industry in the US and Europe.
The EU imposed a temporary anti-dumping duty, which caused a cliff-like decline in China's PV exports to Europe. China's PV companies have been hit hard, including well-known listed companies such as Wuxi Suntech 2013 and Jiangxi Saiwei, all of which declared bankruptcy between 2013 and 2015 due to EU “double oppositionâ€. However, Chinese PV companies are accelerating industrial integration in the midst of difficulties and expanding markets in other regions. According to relevant statistics, in the first half of 2017, China's PV module exports to India increased by 67.3% year-on-year, and exports to Brazil, Mexico and other South American countries increased by 117.9% and 284.7%.
“The EU’s cancellation of the PV’s “double-reverse†measures is a comprehensive consideration of the balance of interests among consumers, EU PV manufacturers and importers,†said CITIC Securities researcher Gong Yongfeng, the gap between European PV manufacturers and Chinese PV leaders is gradually increasing. Far away, it is no longer necessary for the EU to resist the impact of Chinese PV manufacturers through price measures. In addition, the overseas production capacity of China's PV manufacturing industry has already penetrated the trade protection barrier set by the EU, and the double tax rate and MIP have become ineffective.
Small and medium-sized manufacturers have more cost advantages
In fact, the photovoltaic industry has suffered more than this.
On May 31 this year, the National Development and Reform Commission, the Ministry of Finance, and the National Energy Administration issued the Notice on Matters Related to Photovoltaic Power Generation in 2018 (hereinafter referred to as “5·31 Photovoltaic New Dealâ€). The core content is to reduce industry subsidies and limit ordinary The scale of photovoltaic power plants has brought huge impact to the entire industry. The photovoltaic concept stocks have started to fall for three consecutive months, and the market value has continued to drop. The market sentiment is extremely pessimistic.
After the introduction of the new photovoltaic policy in May 31, the market entered a period of rapid freezing, and news such as salary, production suspension, and thunder in the industry continued to emerge. Some people directly call China's photovoltaic industry directly fell to the bottom, falling out of the original face.
It can be concluded that the cancellation of the EU will bring a great boost to the PV market. Central Europe will resume the normal trade of PV products, and the EU will also generate greater demand for China's PV products with cost advantages.
Ren Yingjie, a researcher at open source securities, said that the situation of China's PV companies is now severe. On the one hand, enterprises reduce their component prices, sell power stations to raise cash for self-insurance, and actively seek overseas orders. “European PV 'double reverse' expires, which is a big plus for domestic PV companies.â€
Although the European market is still difficult to completely offset the decline in the short-term global PV installed capacity caused by the domestic 5.31 PV New Deal, the US 201 survey and the Indian policy fluctuations, in the medium term, it will still provide a huge incremental market for enterprise product exports.
Gong Yongfeng believes that since the double-reverse and MIP, domestic small and medium-sized manufacturers have been unable to deploy overseas production capacity and have to withdraw from the European market. After the May 31st PV New Deal, they will continue to be squeezed by first-tier manufacturers in China, this time canceling trade barriers, small and medium-sized photovoltaics. Companies are expected to join the competition, and their prices have more room to fall.
Stainless Steel Elbows,Stainless Steel Vertical Check Valve,Non-Return Valve,Check Valve
ZHITONG PIPE VALVE TECHNOLOGY CO.,LTD , https://www.ztongvalve.com