Australia finds solar module dumping causes negligible injury

PV Magazine

An Australian Government inquiry has found that a number of Chinese PV suppliers are guilty of having dumped modules in the market. However, the anti dumping commission recommended no action be taken due to the relatively small dumping margins and negligible injury or hindrance to the Australian PV industry.

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Investigations have shown dumping of modules by some Chinese producers but that they do not warrant countervailing measures.

Findings of solar module dumping practices by some Chinese producers have lead to duties or trade barriers having being put in place in the EU and U.S. Inquiries into dumping in Australia has lead to the finding that dumping has taken place, however no action will be taken.

The Australian Anti-Dumping Commission delivered its finding today. It notes that there is only one module manufacturer currently operating in Australia and that as it supplies AC modules at a high price point, it was not adversely affected by the dumping. It also noted dumping margins ranged from 2.1% to 8.7%, warranting no countervailing measures.

The Commission found that Wuxi Suntech had the largest dumping margin with 8.7%, followed by Trina Solar (4%), Residual Exporters (3.9%), ET Solar (3%) and Renesola (2.1%). Module exports for China were investigated for the period July 2012 through 31 December 2013.

Australia’s only module manufacturer is Tindo Solar, which operates a 60 MW facility in South Australia.

The Commission finds state that while there was evidence of module dumping in the assessed period, “the injury, to the Australian industry or the hindrance, to the Australian industry’s established, caused by PV modules or panels exported to Australia at dumped prices is negligible.”

The factors the Commission took in deciding not to impose countervailing measures were that the size of the dumping margins were not sufficient, that Tindo’s AC product represents “a premium model and priced significantly higher than the imported direct current PV modules,” and that there were not major changes in Australian PV module market during the period.

“The Commission found that injury or hindrance to the establishment of an Australian industry caused by dumped exports is negligible; therefore the Commission has not calculated a non-injurious price…”

The Australian Solar Council (ASC) has welcomed the move, saying that it is “a win for common sense.”

“The Australian Solar Council welcomes this outcome,” said ASC CEO John Grimes. “It is a win for Australian solar PV consumers.”

 

Source: PV Magazine. Reproduced with permission.

Comments

4 responses to “Australia finds solar module dumping causes negligible injury”

  1. Albert Sjoberg. Avatar

    What is meant by Dumping? Is the product inferior… If so how?

    From the article I understand that the impact was/is negligible, but what was the impact? The article gives percentages, but of what? Is that 8.7% of watts installed, watts sold…

    If someone has these panels on their roof, how does that impact on their system.

    I would like to know what the real impact is, not just that the Australian Anti-Dumping Commission is satisfied that no further action is required.

    1. WR Avatar
      WR

      Dumping refers to products being sold for less than their cost of production.

      It has nothing to do with the quality of the products.

      1. Albert Sjoberg. Avatar

        Thank you for the response WR.
        Then why is this news? Companies have used loss leaders as a market penetrating technique for ages.
        Dumping seems to imply they had more than they could sell and as a result the price was forced down.
        I apologise if I am being particularly obtuse here.

  2. Ronald Brakels Avatar
    Ronald Brakels

    Thank goodness. I agree with ASC that this was a win for common sense. Now I’m just wondering if there was, heaven forbid, poticital interference with the commission in an attempt to get a different result.

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