The European Union has announced to decrease the anti-dumping tariff from 47% to 11.8% in the next two months. The impact this could have on production is still being assessed. The change in placement orders that could occur due to the lowered tariff rate being in an acceptable range for Chinese industries.
According to EnergyTrend, with the European market being seen as a long term important market to Chinese manufacturers, they earnestly try to maintain their visibility while being faced with the AD duty. Therefore with the pressure to lower costs and avoid taxation, many manufacturers have looked for OEMs outside of China where the production cost can be as low as $0.679/W.
Unit: USD
The chances of actualizing such a low cost is low, so with consideration to the markets current price trend and shipping costs, as well as other expenses, it is predicted that the cost for Chinese cells being assembled into Module in EU is actually more likely to be around $0.75~0.83/W. So if Taiwanese manufacturer want to have competitive costs, they must bring product price down to $0.75/W. With different module OEM cost receding, Taiwanese cells price could be $0.41~0.47/W. With the current cost estimate for Taiwanese module OEM, there is still room for Taiwanese manufacturers to inflate cell prices to $0.44~0.47/W.
EnergyTrend’s latest “Anti-Dumping Special Report” covers all cost analysis for Chinese manufacturers based on three scenarios, which will give you a clear outlook on cost structure. Besides, this special report is free and exclusive to EnergyTrend’s registered members, which could help you to make the correct decision and stay competitive.
Market Intelligence Service:
Ms. Corrine Lin
+886-2-7702-6888 ext.925
CorrineLin@TrendForce.com
For more information: EnergyTrend Market Intelligence Service