Can a double-reverse investigation of EU polysilicon save the enterprise?

The Ministry of Commerce announced on the 1st that it decided to initiate an anti-dumping investigation on imported solar-grade polysilicon products originating in the European Union from November 1, 2012, and this case was related to the original case initiated by the Ministry of Commerce on July 20, 2012. An anti-dumping investigation on imported solar-grade polysilicon produced in the United States and South Korea and a combined investigation into imported solar-grade polysilicon countervailing investigations originating in the United States. According to industry insiders, the current dilemma of China's polysilicon industry is mainly caused by the unfair trade of overseas polysilicon. The investigation is a bailout behavior jointly initiated by the Chinese government and enterprises. It is expected to stimulate domestic silicon material prices in the short term, but due to the lack of downstream demand, The increase is not expected to be sustainable. For China's polysilicon enterprises, in order to maintain competitiveness in the world, in addition to the strong support of the government, enterprises still need to intensify their efforts in technological innovation and industry self-discipline. The Ministry of Commerce initiated a double-counter investigation on European, American and Korean polysilicon. According to the latest statistics of the China Nonferrous Metals Association Silicon Branch, three of the seven polysilicon companies listed on the A-share market have stopped production. From a national perspective, at present, among the 43 polysilicon enterprises that have been put into production, only 7-8 companies are still in production, and the rest have closed production lines, and the yield is over 80%. Based on the bleak industry status, on September 17 this year, four sponsors occupying 80% of the national polysilicon enterprises, Jiangsu Zhongneng Silicon Technology Development Co., Ltd., Jiangxi Saiwei LDK Photovoltaic Silicon Technology Co., Ltd., Luoyang Zhongwa High-tech On behalf of the domestic polysilicon industry, the company and Chongqing Daxin Energy Co., Ltd. (hereinafter referred to as the applicant) submitted a written application to the Ministry of Commerce for a “double-reverse” investigation of polysilicon originating in the European Union. However, the four companies that were applicants were still able to start construction at the beginning of this year. By the second quarter, two of the four applicants – Luoyang Zhongsi and LDK LDK – were nearing full shutdown. In the view of Zhu Gongshan, chairman of the China Photovoltaic Industry Alliance, in recent years, China's polysilicon industry has begun to grow and develop. As long as it can maintain a fair trade environment, it is fully capable of competing with overseas giants. Lu Wei, secretary-general of the China Polysilicon Industry Technology Innovation Alliance, believes that the current dilemma of China's polysilicon industry is mainly caused by the unfair trade of overseas polysilicon. In addition to the EU's large dumping of imports to China, the United States and South Korea's imported products also have dumping behavior and received a large number of subsidies. These dumping and subsidized imports have caused tremendous damage to the domestic industry. Therefore, the Ministry of Commerce of the People's Republic of China decided to launch a double-counter investigation on the EU polysilicon and a merger investigation into the US-South Korea anti-dumping and US countervailing investigations filed in July. The evidence of EU corporate subsidies is conclusive. In recent years, the import volume of polysilicon in the EU has increased significantly, and it has been exported to China at a price lower than the normal value. As a result, the status of China's polysilicon industry and various economic indicators have been seriously affected. It is understood that the EU polysilicon currently entering the Chinese market is mainly produced in Germany, and a small part is the Italian product. It is reported that in Germany, investment in polysilicon enterprises can enjoy investment grants called “Improving the common tasks of regional economic structure”. The maximum amount of grants an investor can receive varies depending on the “incentive area” in which they are located and the size of the business. In areas with the highest funding, large companies receive up to 30% of the investment cost, medium-sized companies can get up to 40%, and small businesses can get up to 50%. Lu Biaojin, deputy general manager of Jiangsu Zhongneng, one of the applicants, said that the annual report of the EU polysilicon producers, the company website, the websites of relevant government agencies of the EU and EU member states, the reports of market and industry research institutions, and the World Trade Organization Documents; China and other countries' investigation authorities have collected a large amount of evidence on the rulings of the EU and its member states on countervailing investigations, which fully proves that EU polysilicon producers have received a large amount of subsidies. It is worth noting that in response to China's anti-dumping investigations, some European companies have recently begun to step up shipments. The latest data shows that China's polysilicon imports in September was about 8720 tons, up 13.15% from the previous month and up 34.37% from the same period of last year, both hitting record highs. The average import price was 23.66 US dollars/kg, down 2.34% from the previous month and down 55.74% from the same period. Enter the bottom. In this regard, Lu Jinbiao said that in response to the current intensification of import dumping, the Ministry of Commerce adopted a three-month retrospective levy on US and South Korea polysilicon. The EU also applied for retroactive collection after the case was filed to block the gap during the investigation and prevent surprise imports. The performance of the third quarter of the sorrow and sorrow of the local government to help the industry can be saved? However, from the three quarterly reports, the results of the three quarterly reports of the top ten polysilicon companies listed on the A-share market can be described as sorrowful. The data shows that in the first three quarters, the net profit of most companies in the photovoltaic power generation sector fell by more than 50%. According to the current situation, it is not known whether the government can help the domestic polysilicon enterprises. Not only photovoltaic companies, but also some of the power companies' early use of power advantages of polysilicon business has now become a drag on their own performance improvement. Bai Hongqiang, deputy secretary-general of the China Silicon Materials Information Research Center, said that in the case of polysilicon enterprises, anti-dumping filings are certainly better than not filing them. But there can't be too much hope afterwards. Because the fundamental problem now is not the dumping of foreign countries, but the downstream demand is not smooth, the capacity of component companies is idle, and does not require so much silicon. According to industry insiders, the investigation is a bailout behavior jointly initiated by the Chinese government and enterprises. It is expected to stimulate domestic prices of silicon materials in the short term. However, due to the lack of downstream demand, the increase is not expected to be sustainable. Throughout the entire Chinese polysilicon industry, there are not many companies whose technology and cost control can compete with foreign countries. In order to maintain competitiveness in the world, in addition to the strong support of the government, companies still need to intensify their efforts in technological innovation and industry self-discipline.

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