Effectiveness of various anti-dumping actions expected to have widely-varying impact on global solar markets

May 11, 2014

The Indian Ministry of New and Renewable Energy (MNRE) and several state governments have voiced a united opinion against plans by the Ministry of Commerce to impose anti-dumping duties on international solar panels. While this may seem a side issue to the main stage of the high profile trade disputes between China, the United States and the European Union, it is potentially quite significant. The long term growth potential of the Indian market is high, and decisions taken here will affect not only the prospects for Indian and international PV companies, but – given the price difference between Chinese and domestic PV equipment – potentially the extent to which solar PV takes off in the country.

Meanwhile, commercial interests have been quicker to move ahead of policy makers in the latest developments involving Chinese duties on EU based polysilicon. While the Chinese government has announced punitive duties on EU polysilicon, Wacker Chemie (the major polysilicon producer in Europe, accounting for the bulk of polysilicon from the region into China) has already separately entered an agreement to not sell its polysilicon below a committed minimum price in return for exclusion from the import duties.  Accordingly, while the duties themselves will now have limited impact on EU polysilicon exports, their chief value to China was as an incentive for Wacker to negotiate a minimum price commitment.