The imposition of the European Commission’s anti-dumping tariffs has increased the price for Chinese-manufactured solar modules, according to the latest report by IHS.
The report, PV Price Tracker – Modules, suggests the average price for Chinese polysilicon modules in Europe rose by 4% in June, and is likely to continue to rise in July, and again in September.
Senior director of solar research for IHS, Dr. Henning Wicht said, “With the plan to reduce government subsidies in Germany starting in April 2012, low-cost PV modules from China took over as the engine of growth in the European solar market, enabling the continued expansion of installations.
“However, the era of low-cost Chinese modules is now over, as prices have risen due to the EU Commission’s implementation of preliminary anti-dumping tariffs. This will have a negative impact on solar installations, and is likely to cause many companies engaged in the engineering, procurement and construction (EPC) of solar systems to go out of business this year.”
It was widely hoped by many in the industry that the European Union and China could negotiate a settlement to avoid the imposition of further duties before 5th August.
Senior PV analyst at IHS, Glenn Gu, said: “If the 47.6% tariff goes into effect, global supply lines and pricing for solar modules will be shaken up dramatically.
“Chinese suppliers initially will suspend almost all shipments to Europe. In order to continue serving the European market, they then will try to shift production capacity to locations outside of China by using overseas branches or via agreements with non-Chinese module makers. But even if they succeed in this, the supply disruption is likely to cause module prices to increase 12-20% during the following months.”