Four China Polysilicon Firms Demand Government Start Anti-dumping And Anti-subsidy Investigation Against US Firms, According to China Media

Four China-based polysilicon firms, LDK, Jiangsu Zhongneng, Shannxi Tianhong Silicon Material, and China Silicon Corporation, have applied to the Ministry of Commerce in China, asking the government to start an anti-dumping and anti-subsidy investigation against US-based polysilicon firms, according to China news outlet NE21.

However, downstream firms in China are not happy with the move. Industry sources indicated that if the China government really imposes restrictions on US-based polysilicon firms, there will be less choice in solar product materials, which will increase costs, added the report.

The diversified solar industry in China may stem from negotiations on polysilicon pricing between upstream and downstream firms, said the report.

The majority of polysilicon in China is imported, added the report. According to studies, the import of polysilicon in China in first-half 2011 topped 5,000 tons, and US-based firms accounted for one-third.

The report pointed out that the current spot price of polysilicon is just a little under US$30/kg. This low price has seriously threatened the survival of China's polysilicon firms as most firms have production costs of US$35/kg. International firms have larger capacity hence lower production costs.

The report further noted that many US-based solar firms have been lobbying the US government to not set up punitive tariffs against China-based solar firms. If the China government begins its own anti-dumping and anti-subsidy investigation against US-based peers, both sides will lose.