L R AS Published on Sunday 19 January 2020 - n° 305 - Categories:the American PV, silicon mono/multi
Will the China/US trade agreement allow for a revival of US silicon?
US silicon manufacturers remain cautious about the announcement that silicon will be included in the trade agreement signed between the US and China this week. They are waiting to see how Chinese tariffs will be lowered (currently at 57%), how competitive their products will be, and how Chinese spending will be distributed across products or commodities.
Chinese customs duties on American silicon were introduced in 2014. US silicon exports reached 22,314 tonnes in 2014. They fell to 8,724 tonnes in 2017, the reference year used in this trade agreement. This fall has been amplified in recent years.
These Chinese customs duties have enabled China to become almost self-sufficient in silicon, reinforcing its control over this fundamental product for the manufacture of panels. It has done so by moving production plants to the west of the country, where the price of energy is cheap. This tells US-based Roth Capital that it is likely to be difficult for US producers to be profitable at the current price of silicon in China.
GreenTech Media of January 17
Editor's note China's objective is to be the world's only producer in the photovoltaic sector. It therefore has no interest in facilitating the survival of American silicon manufacturers who have no other outlets than China. It is very likely that the Chinese concessions will be of pure form and will not allow the American companies to recover.
