Crystalline Silicon Photovoltaic Cells and Modules from China
Total Page:16
File Type:pdf, Size:1020Kb
Crystalline Silicon Photovoltaic Cells and Modules From China Investigation Nos. 701-TA-481 and 731-TA-1190 (Final) Publication 4360 November 2012 U.S. International Trade Commission Washington, DC 20436 U.S. International Trade Commission COMMISSIONERS Irving A. Williamson, Chairman Daniel R. Pearson Shara L. Aranoff Dean A. Pinkert David S. Johanson Meredith M. Broadbent Robert B. Koopman Director, Office of Operations Staff assigned Christopher Cassise, Senior Investigator Andrew David, Industry Analyst Aimee Larsen, Economist Samantha Day, Economist David Boyland, Accountant Mary Jane Alves, Attorney Lita David-Harris, Statistician Jim McClure, Supervisory Investigator Address all communications to Secretary to the Commission United States International Trade Commission Washington, DC 20436 U.S. International Trade Commission Washington, DC 20436 www.usitc.gov Crystalline Silicon Photovoltaic Cells and Modules From China Investigation Nos. 701-TA-481 and 731-TA-1190 (Final) Publication 4360 November 2012 C O N T E N T S Page Determinations ................................................................. 1 Views of the Commission ......................................................... 3 Dissenting opinion of Chairman Irving A. Williamson and Commissioner Dean A. Pinkert on critical circumstances ......................................................... 47 Part I: Introduction ............................................................ I-1 Background .................................................................. I-1 Organization of report.......................................................... I-1 U.S. market summary.......................................................... I-3 Summary data and data sources .................................................. I-3 Previous and related investigations................................................ I-4 Nature and extent of sales at LTFV ............................................... I-4 Nature of countervailable subsidies ............................................... I-5 The subject product ............................................................ I-6 Commerce’s scope.......................................................... I-6 Scope issues at Commerce.................................................... I-7 Tariff treatment ............................................................ I-8 Physical characteristics and uses............................................... I-9 Production process .......................................................... I-15 Domestic like product issues .................................................... I-19 CSPV cells and modules vs. thin film solar products ............................... I-19 Part II: Conditions of competition in the U.S. market ................................ II-1 U.S. market characteristics...................................................... II-1 Channels of distribution........................................................ II-1 Market segments.............................................................. II-2 U.S. purchasers ............................................................... II-5 Geographic distribution ........................................................ II-6 Supply and demand considerations ................................................ II-7 U.S. supply ............................................................... II-7 U.S. demand .............................................................. II-10 Substitutability issues .......................................................... II-19 Factors affecting purchasing decisions .......................................... II-19 Comparison of U.S.-produced and imported products .............................. II-26 Elasticity estimates............................................................ II-31 U.S. supply elasticity ........................................................ II-31 U.S. demand elasticity....................................................... II-31 Substitution elasticity ....................................................... II-31 Part III: U.S. producers’ production, shipments, and employment ...................... III-1 U.S. producers ............................................................... III-1 U.S. producers of CSPV cells................................................. III-3 U.S. producers of CSPV modules .............................................. III-3 U.S. capacity, production, and capacity utilization ................................... III-3 U.S. producers’ U.S. shipments and export shipments ................................. III-7 U.S. producers’ imports and purchases of imports .................................... III-9 U.S. producers’ inventories ..................................................... III-10 U.S. employment, wages, and productivity ......................................... III-11 i C O N T E N T S Page Part IV: U.S. imports, apparent consumption, and market shares ...................... IV-1 U.S. importers................................................................ IV-1 U.S. imports ................................................................. IV-5 Negligibility ................................................................. IV-8 Critical circumstances.......................................................... IV-8 Apparent U.S. consumption and market shares ...................................... IV-11 Ratio of imports to U.S. production ............................................... IV-14 Part V: Pricing and related information ............................................ V-1 Factors affecting prices......................................................... V-1 Raw material costs.......................................................... V-1 U.S. inland transportation costs................................................ V-3 Pricing practices.............................................................. V-3 Pricing methods ............................................................ V-3 Sales terms and discounts .................................................... V-4 Price leaders............................................................... V-4 Price data ................................................................... V-5 Published price data ........................................................... V-12 Lost sales and lost revenues ..................................................... V-12 Part VI: Financial condition of U.S. producers ...................................... VI-1 Background .................................................................. VI-1 Operations on CSPV cells and modules ............................................ VI-2 Capital expenditures and research and development expenses ........................... VI-8 Capital and investment......................................................... VI-9 Part VII: Threat considerations .................................................. VII-1 The industry in China .......................................................... VII-2 U.S. importers’ inventories...................................................... VII-11 U.S. importers’ current orders ................................................... VII-12 Antidumping and countervailing duty orders in third-country markets .................... VII-13 Information on nonsubject sources ................................................ VII-13 Appendixes A. Federal Register notices....................................................... A-1 B. List of hearing witnesses ...................................................... B-1 C. Summary data............................................................... C-1 D. Quarterly domestic, Chinese, and nonsubject-country price data ....................... D-1 E. U.S. producers’ & U.S. importers’ narrative responses to domestic like product questions . E-1 Note.--Information that would reveal confidential operations of individual concerns may not be published and therefore has been deleted from this report. Such deletions are indicated by asterisks. ii UNITED STATES INTERNATIONAL TRADE COMMISSION Investigation Nos. 701-TA-481 and 731-TA-1190 (Final) CRYSTALLINE SILICON PHOTOVOLTAIC CELLS AND MODULES FROM CHINA DETERMINATIONS On the basis of the record1 developed in the subject investigations, the United States International Trade Commission (Commission) determines, pursuant to sections 705(b) and 735(b) of the Tariff Act of 1930 (19 U.S.C. ' 1671d(b)) and (19 U.S.C. ' 1673d(b)) (the Act), that an industry in the United States is materially injured by reason of imports of crystalline silicon photovoltaic cells and modules from China, provided for in subheadings 8501.31.80, 8501.61.00, 8507.20.80, and 8541.40.60 of the Harmonized Tariff Schedule of the United States, that the U.S. Department of Commerce (Commerce) has determined are subsidized and sold in the United States at less than fair value.2 BACKGROUND The Commission instituted these investigations effective October 19, 2011, following receipt of petitions filed with the Commission and Commerce by Solar World Industries America, Hillsboro, OR. The final phase of these investigations was scheduled by the Commission following notification of preliminary determinations by Commerce that imports of crystalline silicon photovoltaic cells and modules from China were subsidized within the meaning of section 703(b) of the Act (19 U.S.C. ' 1671b(b)) and dumped within the meaning of 733(b) of the Act (19 U.S.C. ' 1673b(b)). Notice of the scheduling of the final phase