The specific content of the "price commitment" negotiations is: China promises that the PV products exported to Europe should not be lower than a certain minimum price and set a specific time limit; China promises to limit the components exported to Europe each year to a certain scale. In exchange, the EU will not take anti-dumping measures against Chinese PV products.
China and the EU's price commitment negotiations in the field of photovoltaics began after the EU issued a dual-reverse preliminary ruling on photovoltaic products in China on June 4, and reached a resolution framework for price commitments in the first round of negotiations on June 10; On the 21st of the month, the second round of negotiations was held in Brussels, Europe. The Chinese delegation was mainly the Ministry of Commerce and the China Chamber of Commerce for Import and Export of Mechanical and Electrical Products (hereinafter referred to as the “Electrical Chamber of Commerceâ€).
The second round of price commitment negotiations originally ended on June 28, but the two sides have not made progress, and the EU Trade Commission has extended this for two weeks. The major difference in the negotiations is that the European side believes that China should raise the export price to 0.6-0.65 euros/watt, while the Chinese proposal is 0.5-0.55 euro/watt.
However, at present, many companies have expressed pessimism about the prospects of price commitment negotiations, and they have made comments by voting with their feet. The photovoltaic giants such as Sun Hui Sunshine (NYSE: SOL), Comtec and China Light and Power Photovoltaic have successively Set up a factory overseas.
Li Xiangshou, CEO of Sunshine Sunshine, is pessimistic about the “price commitment†negotiations. In its view, the greater interest of the "price commitment" negotiations is the game between China and the EU. "The EU must also talk to China about other aspects of the business, such as the opening of the banking industry. Negotiations at the national level are the core."
Price commitment negotiation differences
A report issued by Reuters on July 12th, the European Commission documents show that in this price commitment negotiation, China hopes that any relevant agreement will expire at the end of 2014, and the silicon wafer should not be within the scope of taxation. And the EU's restrictions on imports of photovoltaic products from China should be very slight.
The document stated that the EU believes that these Chinese requirements are “hard to achieveâ€. However, European Commission trade spokesperson John Clancy declined to comment on the document, saying only that the highest level of negotiations between the two sides is continuing, with the aim of finding a solution.
The price commitment negotiations must be negotiated before August 6. If the two sides fail to reach a solution, the EU will increase the anti-dumping tax rate on China's PV products from the current 11.8% to 47.6%, and the final decision will be in December. Made.
A PV company in Jiangxi admits that the current price of the Chinese negotiating team is reported by 66 companies, that is, the component price bottom line is between 0.5-0.57 euros/watt. "These plans are submitted before June 10. Go up."
"The bottom line of the price has not changed at present, and the Chinese side has not made any concessions." The above-mentioned Jiangsu PV company executives revealed that if the Chinese side gives in, the negotiating team will consult with the PV companies, but the company has not received the price concession information of the negotiating team. This price is also the customs clearance price after the product arrives in the EU.
At present, the price of self-produced PV modules in EU member states is in the range of 0.6-0.7 Euro/W. The current price line of 0.5-0.54 Euro/W, which is currently proposed by Chinese PV companies, is the price of Chinese companies in EU member states.
In addition to the price, the two sides also held consultations on the scale of export. According to reports, the Chinese side proposes that the total amount of PV modules exported to the EU each year should not exceed 10 GW, and no tax will be levied or less than 10 GW, and more than 10 GW will be levied according to relevant regulations.
Wang Xinghua, chairman of Zhongsheng Optoelectronics Group, told reporters that if the final price commitment is successful, the import quotas obtained from the EU will be allocated by the companies in proportion to the legal fees.
Sea peripheral factory advance and retreat
However, many companies are pessimistic about the outcome of the price commitment negotiations.
"The message we communicate with European distributors is that the EU does not want to talk to you at all. It is just because the pressure from the Chinese side is too great." The above-mentioned PV companies analyzed that the EU may want to drag the negotiations through August 6th. The anti-dumping tax rate will be lowered before the final ruling.
In its view, companies will be subject to a punitive tariff of 47.6% after August 6th, which is no longer competitive with local companies. "Before the final ruling, the tax rate will be adjusted to 30%, from 47.6% to 30% will have a psychological comfort", but the price is only equivalent to the EU manufacturers or slightly higher, has no competitiveness.
The EU's PV to China is the opposite. Domestic PV products are beginning to be returned to large scale by European suppliers. Traders are still worried that the EU will impose high punitive tariffs on August 6. Taking Zhejiang as an example, since July last year, seven PV manufacturers in Zhejiang Province have suffered 10 batches of returns in a year, amounting to more than 3.3 million US dollars.
In the context of the EU's proposal that the double-reverse sticks fall and the negative outlook for price commitment negotiations, the domestic PV companies such as Qihui Sunshine, Zhongdian Photovoltaic, Yingli and Tianhe have already set their factories overseas or will soon set up factories overseas. There are more than 40 foundries overseas.
As a domestic leading manufacturer of photovoltaic monocrystalline silicon wafers, Comtec announced in July that the new Malaysian plant with an investment of 400 million yuan and a planned annual production capacity of 1GW will be completed by the end of this year, and the capacity reduction of the Shanghai base will follow. In the future, the company will focus on producing new factories in Malaysia.
Abstract “China and the EU are still negotiating on the price commitment negotiations for China's PV products, but they have been in a stalemate. The two sides have not reached a consensus on the price and export volume.†On July 17, a Chinese PV team approaching the Chinese negotiating team Business executives told reporters. &nb
"China and the EU are still negotiating on the price commitment negotiations for China's PV products, but they have already reached a stalemate. The two sides have not reached a consensus on the price and export volume." On July 17, a Jiangsu PV company close to the Chinese negotiating team The executive told reporters.