China to impose duties of as much as 57% on polysilicon from the U.S. and South Korea.
GCL-Poly Rises on Chinese Polysilicon Duties: Hong Kong Mover
By Bloomberg News - Jul 18, 2013 8:47 PM PT.
\GCL-Poly Energy Holdings Ltd. (3800) surged after China announced plans to impose duties of as much as 57 percent on polysilicon from the U.S. and South Korea.
The stock of the world’s biggest polysilicon maker rose 4.8 percent to HK$1.97 as of 11:09 a.m. in Hong Kong trading after earlier gaining as much as 5.3 percent. The benchmark Hang Seng Index fell as much as 0.6 percent.
Importers of the raw material to make solar panels must begin paying the duties on July 24. The highest rate was imposed on companies including the U.S. units of Renewable Energy Corp ASA (REC), while the lowest were placed on South Korea’s OCI Co. at 2.4 percent, according to a statement on the Chinese commerce ministry’s website yesterday.
“The decision will boost demand for domestic polysilicon makers and their price will also increase,” Wang Minnan, a Beijing-based analyst at Bloomberg New Energy Finance, said by phone. More than half of Chinese demand for polysilicon was met by imports before the ruling, Wang said.
Daqo New Energy Corp. (DQ), a Chinese producer of the commodity, rose 9.9 percent to close at $10.54 in New York yesterday, bringing this year’s gain to 32 percent.
Chinese polysilicon makers led by GCL-Poly and Daqo increased production in the second quarter as imports declined. ReneSola Ltd. (SOL) earlier this month revived production at its Sichuan polysilicon plant, which has an annual capacity of 10,000 metric tons.
This does not affect GT in a negative way at all. GTAT does not saw raw polysilicon into China. They sell polysilicon manufacturing equipment to many Chinese companies. This equipment is not subject to the tariff. If anything this is a positive. We all knew long ago that any counter tariffs would not impact GTAT. Their sales to China are too important to Chinese interests.
2010-GCL-Poly is committed to providing high-quality and cost-competitive solar raw materials by adopting the best-in-class technologies and equipment," said Mr. Zhu Gong Shan, executive director, chairman and chief executive officer of GCL-Poly. "We chose to purchase the TCS Production Solution and DSS units from GT Solar because of their proven expertise in both polysilicon production and ingot crystallization. GT Solar's TCS production solution should help to improve the quality and lower the cost of our polysilicon operations. Their expected timely delivery of the DSS furnaces should help to ensure that our new ingot and wafer production facility can be up-and-running