China imposes heavy tariffs on US and Korean polysilicon
Punitive duties will begin on July 24.
China next week will impose tariffs as high as 57% on polysilicon shipped from the US and South Korea to stop the product from being sold below cost. Polysilicon is the raw material used to make solar panels while China is world’s biggest solar-module maker.
The U.S. units of Renewable Energy Corporation ASA are among companies to receive the highest tariff rate while Korea’s OCI Co. will have the lowest at 2.4%.
The decision is the preliminary ruling of a probe opened last year. The investigation responds to a U.S. decision in 2012 to impose tariffs of as much as 250% on Chinese solar panels after a plunge in prices was blamed on China.
Analysts said the Chinese ruling is good for domestic polysilicon manufacturers because it will reduce supplies from abroad, boosting prices for the raw material in China, It may also accelerate talks between China and the European Union to resolve a separate trade dispute over solar pricing.