Chinese solar stocks start to slump31st May 2012
Stocks in solar power companies have taken a hit in China following an announcement that the US is imposing anti-dumping tariffs on solar panels from the country.
Anti-dumping tariffs are not something most of us are familiar with, but they essentially mean that Chinese solar panel manufacturers will now have to pay significantly more to export their products to the US.
The tariff will be at least 31 per cent, which as you can imagine will significantly bump up the price of panels for consumers all over the country.
Now it is not only the tariffs that are getting the Chinese hot under the collar, as stocks are now starting to slump as a result of the move - or so the Paragon Report suggests.
Paula Mints, analyst at Navigant Consulting, told the group that China was responsible for shipping around half the world's solar panels last year, making these extra costs a significant blow.
The manufacturers have pointed out that their industry is under threat from the tariffs, potentially having a knock-on effect when it comes to Australia's provision of cheap solar panels.
If competitiveness in the industry is to continue, we could do with this situation being resolved sooner rather than later!
Posted by Mike Peacock