What will be the impact of South Africa's desire to impose a 10 per cent tariff on all imported components?-Shanghai Metals Market

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What will be the impact of South Africa's desire to impose a 10 per cent tariff on all imported components?

Translation 10:01:27AM May 28, 2019 Source:SOLARZOOM
The content below was translated by Tencent automatically for reference.

SMM News: South Africa is a very potential photovoltaic market, solar photovoltaic projects have continued to grow rapidly in recent years. IRENA found a steady increase in installed capacity in 2016 (1.97GW), 2017 (2.1GW) and 2018 (2.5GW). South Africa's long-term plan is to meet the 5.67GW target by 2030.

From the feedback of people from all walks of life, I am afraid that the impact of the increase in tariffs on the South African market is not optimistic.

CEO, a South African subsidiary of Segen, a British solar company, said the introduction of import tariffs could lead to an overnight 10 per cent rise in photovoltaic module prices in South Africa. "the 10 per cent tariff will eventually be passed on to customers or installers in the form of a rise in product prices-which could lead to a sharp decline in demand and squeeze profits, especially for small dealers." He believes that the root of the problem facing South Africa lies in the lack of government support for the industry, and China is the best example, growing from 10 percent a year in 2012 to 55 percent in 2017. the photovoltaic industry has exploded. Because it is constantly adjusting the country's solar installation targets.

Blue energy respondents said that the introduction of tariffs will certainly have a negative impact on the domestic solar industry in South Africa, and rising prices may affect customers' choice of solar energy. "the solar installation industry has created more local jobs than any manufacturing industry, and the focus of government work should be on accelerating industry growth in order to create more jobs, rather than by imposing tariffs. Hindering the development of the industry. "

It was also suggested that the best way to stimulate the localization of the solar industry was to create stable demand and that the government should focus on the development of laws and regulations in the industry and hold regular procurement of large public projects. Deeper reasons for the gradual collapse of local component manufacturers are delays in local projects from companies such as Solairedirect, SunPower, Jinko Solar, and so on.

The issue of tariffs on photovoltaic module imports is also reminiscent of Eskom.

It has to be said that none of the events related to South African energy can circumvent the existence of the South African National Power Eskom. In February of this year, there was a massive power outage in South Africa. We have seen the chaos of the hollowed-out Eskom and tried to analyze why Eskom fell from the giant to the altar. The South African government has been helping Eskom stay afloat by investing in it, and hopes to pull the country's top companies back from the brink of death.

Today's Eskom, with $355 million in debt and notorious for power shortages, is still an unshakeable energy giant.

Although it is a traditional energy giant, the ups and downs of renewable energy in South Africa are also closely related to Eskom. It is believed that the South African government had planned to launch last year's 1.8GW renewable energy project tender, because of the rescue of Eskom and temporarily stranded.

Some power users in South Africa are trying to get rid of their dependence on Eskom by building their own solar power plants, and if tariffs are imposed, Eskom's monopoly in South Africa's energy supply chain will be strengthened.

As for the formal approval of the tax increase application, there is also a very critical factor. Some analysts say that South Africa is part of the World Trade Organization, and that the new tariffs may cause South Africa to violate trade law, for this reason. It is not known whether the application will be approved.

Will Chinese photovoltaic enterprises suffer a major impact?

According to the continuously updated customs import and export data from the SOLARZOOM New Energy think tank, more than 97% of the photovoltaic modules in South Africa are from China. It seems that they treat the whole world equally and are still aimed at China.

On the other hand, the volume of goods (components) exported to South Africa is between Ukraine and Germany, accounting for 1/3 of the total exports to Vietnam, accounting for about 3.5% of the total exports. On the whole, it has little impact on the export of components in China.

From the point of view of the enterprises exported to South Africa, Longji, Ates and Suntech account for about 88% of the total components exported to South Africa, and South Africa is also one of the important markets for the above three enterprises. The share accounts for more than 10%.

If South Africa imposes tariffs on imported components, Longji, Ates and Suntech are estimated to be affected to a greater extent.

Key Words:  Photovoltaic  silicon  South Africa  tariffs 

What will be the impact of South Africa's desire to impose a 10 per cent tariff on all imported components?

Translation 10:01:27AM May 28, 2019 Source:SOLARZOOM
The content below was translated by Tencent automatically for reference.

SMM News: South Africa is a very potential photovoltaic market, solar photovoltaic projects have continued to grow rapidly in recent years. IRENA found a steady increase in installed capacity in 2016 (1.97GW), 2017 (2.1GW) and 2018 (2.5GW). South Africa's long-term plan is to meet the 5.67GW target by 2030.

From the feedback of people from all walks of life, I am afraid that the impact of the increase in tariffs on the South African market is not optimistic.

CEO, a South African subsidiary of Segen, a British solar company, said the introduction of import tariffs could lead to an overnight 10 per cent rise in photovoltaic module prices in South Africa. "the 10 per cent tariff will eventually be passed on to customers or installers in the form of a rise in product prices-which could lead to a sharp decline in demand and squeeze profits, especially for small dealers." He believes that the root of the problem facing South Africa lies in the lack of government support for the industry, and China is the best example, growing from 10 percent a year in 2012 to 55 percent in 2017. the photovoltaic industry has exploded. Because it is constantly adjusting the country's solar installation targets.

Blue energy respondents said that the introduction of tariffs will certainly have a negative impact on the domestic solar industry in South Africa, and rising prices may affect customers' choice of solar energy. "the solar installation industry has created more local jobs than any manufacturing industry, and the focus of government work should be on accelerating industry growth in order to create more jobs, rather than by imposing tariffs. Hindering the development of the industry. "

It was also suggested that the best way to stimulate the localization of the solar industry was to create stable demand and that the government should focus on the development of laws and regulations in the industry and hold regular procurement of large public projects. Deeper reasons for the gradual collapse of local component manufacturers are delays in local projects from companies such as Solairedirect, SunPower, Jinko Solar, and so on.

The issue of tariffs on photovoltaic module imports is also reminiscent of Eskom.

It has to be said that none of the events related to South African energy can circumvent the existence of the South African National Power Eskom. In February of this year, there was a massive power outage in South Africa. We have seen the chaos of the hollowed-out Eskom and tried to analyze why Eskom fell from the giant to the altar. The South African government has been helping Eskom stay afloat by investing in it, and hopes to pull the country's top companies back from the brink of death.

Today's Eskom, with $355 million in debt and notorious for power shortages, is still an unshakeable energy giant.

Although it is a traditional energy giant, the ups and downs of renewable energy in South Africa are also closely related to Eskom. It is believed that the South African government had planned to launch last year's 1.8GW renewable energy project tender, because of the rescue of Eskom and temporarily stranded.

Some power users in South Africa are trying to get rid of their dependence on Eskom by building their own solar power plants, and if tariffs are imposed, Eskom's monopoly in South Africa's energy supply chain will be strengthened.

As for the formal approval of the tax increase application, there is also a very critical factor. Some analysts say that South Africa is part of the World Trade Organization, and that the new tariffs may cause South Africa to violate trade law, for this reason. It is not known whether the application will be approved.

Will Chinese photovoltaic enterprises suffer a major impact?

According to the continuously updated customs import and export data from the SOLARZOOM New Energy think tank, more than 97% of the photovoltaic modules in South Africa are from China. It seems that they treat the whole world equally and are still aimed at China.

On the other hand, the volume of goods (components) exported to South Africa is between Ukraine and Germany, accounting for 1/3 of the total exports to Vietnam, accounting for about 3.5% of the total exports. On the whole, it has little impact on the export of components in China.

From the point of view of the enterprises exported to South Africa, Longji, Ates and Suntech account for about 88% of the total components exported to South Africa, and South Africa is also one of the important markets for the above three enterprises. The share accounts for more than 10%.

If South Africa imposes tariffs on imported components, Longji, Ates and Suntech are estimated to be affected to a greater extent.

Key Words:  Photovoltaic  silicon  South Africa  tariffs