China's photovoltaic products continue to climb to the United States

Abstract Abstract: The export volume of Chinese PV companies in the United States is still rising gradually. It does not seem to be affected by the anti-dumping tax rate of US PV products to China. At the same time, the prices of products exported to the United States are lower than those of local enterprises. This is bringing new "trouble" to Chinese PV companies.
Abstract: The export volume of Chinese PV companies in the United States is still rising gradually. It does not seem to be affected by the anti-dumping tax rate of US PV products to China. At the same time, the prices of products exported to the United States are lower than those of local enterprises. This is bringing new "trouble" to Chinese PV companies.

        Solarbe Photovoltaic Solar Network News: [Shangde Power, Yingli and Trina Solar are once in the US market as "big names" companies: in the first three quarters of 2011, they exported US products, accounting for US PV products. 19%, 14% and 20% of the total]

        The export volume of Chinese PV companies in the United States is still rising gradually. It does not seem to be affected by the anti-dumping tax rate of US PV products to China. At the same time, the prices of products exported to the United States are lower than those of local enterprises. This is bringing new "trouble" to Chinese PV companies.

        Recently, the bankruptcy administrator of an American company Energy Conversion Devices (hereinafter referred to as "ECD") to Suntech Power (STP.NYSE), Yingli Green Energy (YGE.NYSE, hereinafter referred to as "Yingli") and Trina Solar (TSL. Three Chinese companies, including NYSE, filed a lawsuit seeking compensation of $950 million. The reason is that “three Chinese companies continue to destroy and harm competitors, thus achieving the purpose of destroying all market competition”, which led to the bankruptcy of ECD.

        Yesterday, the above three companies did not respond positively to this statement.

        Many PV industry believe that this is an event that can be expected after China's anti-dumping investigations in the United States. Many US companies have indeed withdrawn from the market because of fierce competition. Now there are few companies with large scale in the US PV market. Nevertheless, this does not mean that the “low price” products of Chinese PV companies have led to the bankruptcy of ECD.

        According to industry insiders, the battery products of American companies are more efficient than those imported from China, so the pricing is higher. The Sino-US PV products do not compete at the same level, and the threat relationship between them is not great.

No fear of tax rate, exports continue to climb

        According to overseas media, ECD's bankruptcy administrator John Madden sued the three companies on the grounds that Chinese companies illegally occupied the US market, flooding the United States with a large number of low-cost solar modules. John Madden is from a trust that created the reason for debt recovery for ECD creditors.

        The photovoltaic companies that manufacture photovoltaic modules in China are not really low in sales in the United States.

        Taking Yingli as an example, the company's revenue in the US from 2010 to 2012 was RMB 1,216 million, RMB 2.137 billion, and RMB 1.6 billion, accounting for 9.7%, 14.6%, and 14.1% of the company's total sales. Yingli’s sales revenue in the German region fell from 57% in 2010 to 42%. In the second quarter of this year, Yingli announced that its sales in the United States may increase by 250% in 2012 compared with 2012.

        Trina Solar's 2012 annual report also shows that from 2010 to 2012, its sales to the US, the proportion of sales of the company jumped from 14% to 25.5%, the company's business in the United States, did not receive The impact of the US anti-dumping tax rate on Chinese PV products.

        The reporter found that Suntech Power did not announce the 2011 and 2012 earnings reports. However, CCTV has reported that companies such as Suntech Power, Yingli and Trina Solar were once in the US market as “big-name” companies: in the first three quarters of 2011, they exported US products, accounting for 19% of total US PV products. %, 14% and 20%.

Chinese and American products misplaced competition?

        “The reason why domestic companies can win higher sales in the United States has a certain relationship with lower prices.” An insider of JA Solar said, “Although China has been subject to the tax rate of the US anti-dumping investigation, it is currently According to the freight rate, the price of domestically produced goods in the United States is about 66 cents per watt. The products of local companies in the United States are about 68 cents per watt and 70 cents.
        Why on May 17, 2012, the US Department of Commerce has applied a temporary anti-dumping duty rate ranging from 31.14% to 249.96% for PV companies involved in China, and Chinese products can still be exported to the United States in large quantities today?

        The aforementioned JA Solars said that the way for Chinese companies to avoid tax is to take batteries from Taiwan to process them into components and then export them to the United States. As long as the raw materials - the battery is not produced in mainland China, the United States will not impose high tariffs. He also said that China’s exports to the United States at a price of 66 cents per watt are still profitable. “Because Chinese companies are selling PV modules outside the US, in domestic and European markets, and building a large number of PV power plant systems, their total gross profit is low, and it also masks the good gross profit achieved by selling components in the US alone. But those familiar with the market know that the manufacturing costs in the United States are still higher than those of Chinese companies."

        However, there are also media reports that the investment return rate of building a PV module factory in the United States is more advantageous than in China. The same 1G watt factory, component costs in the United States, China are 0.6 US dollars / watt, 0.54 US dollars / watt. If the investment return period is 9 years, then the ROIC (return on investment) of the two places is 10% and 8% respectively. Therefore, setting up a factory in the United States may be a new option for many companies that intend to continue to make profits in the United States.

        Shangde Power had already opened a factory in the United States. However, due to the poor management of Suntech's Wuxi Suntech and serious management problems, it was also involved in the US component factory, which was closed in April this year. However, component companies including large-scale factories in China, such as Artes and Jinko Energy, still do not rule out the possibility of building new plants in the United States.

        A management of Artes also revealed to reporters that there are few large-scale PV module manufacturers in the United States, and now it is the first solar energy (FSLR.NYSE) and SUNPOWER. The first solar cadmium telluride film technology is different from the traditional polysilicon production method. "SUNPOWER's battery product efficiency is as high as 20% or more, and China's 15% to 18% efficiency is also different, and its pricing is slightly higher. (about 1 US dollar / watt)." The aforementioned people of JA Solar said that the competition between American companies and Chinese companies is now at two levels, and the threat of competition between them does not seem to be great.

        Many PV people also believe that the incident in which the three companies were sued by US companies, considering the actual situation of Suntech, may be the most affected by Trina Solar and Yingli.

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