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EU AD Tariff Has Both Pros And Cons. Industry Traders Wait And Watch The Developments

The European Union during June and July will decrease the anti-dumping tariff from 47% to 11.8%. The impact this could have on production is still being assessed. As stated by global market intelligence organization TrendForce's research division EnergyTrend, their focuses is on the change in placement orders that could occur in the next two months due to the lowered tariff rate being in an acceptable range for Chinese industries.

According to EnergyTrend, with it still being unclear as to whether Europe and China can come to an agreement within two months, China has continued to increase production capacity, taking advantage of this time period to speed up its deliveries to the European market. We expect to see a mini-boom during the months of June and July. Previously, to avoid taxation from Europe, Chinese manufactures turned to Taiwan companies for orders. Whether or not the order status will change during this temporary period of lowered taxation is the focus of EnergyTrend's observations. Due to Taiwan and China's quoted price having a difference of 5%~10%, Chinese manufacturers are beginning to consider adjusting the order proportions. The future developments are worth paying attention to.

In accordance to the impact on the PV industry in Taiwan, EnergyTrend's investigation shows that industries maintain a positive outlook for the future. Related industries expressed that current orders can already be seen for the Q3. The majority of sales for June have already been completed, with some industries already being 70~80% complete for July sales. However June still has customers placing orders. Cell production capacity supply and demand situation remains critical and are not concerned with consumer order adjustment. The decision on whether to pass the anti-dumping tariff and anti-subsidy for the European market will be clearer during August. Related industries will not risk placing orders for fear of high losses in case the situation does not develop as planned in August. They believe that even though the market is making a lot of noise lately, both sides are still trying to feel each other out, with the possibility of it actually happening being low.

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