Solar Stocks Falling On Anti-Dumping Determination
The Canadian International Trade Tribunal (CITT) detailed the findings from an investigation into Chinese companies who were importing solar PV products into Canada.
According to the CITT's findings, dumping and subsidizing by Chinese companies has been taking place. The organization noted that the practice has not yet resulted in setbacks to the domestic industry, but does pose the risk to harm the industry in the future.
As a result, the CITT announced on Friday that anti-dumping tariffs for several Chinese companies will be in effect for a period of five years, starting immediately.
Chinese Solar Stocks Reacting
Shares of Canadian Solar Inc. (NASDAQ: CSIQ) were among the sector's better performers, down by 3.36 percent at $26.48.
The company responded to the new tariffs and told PV Magazine that "most of our modules supplied to Canada markets are produced locally." The company has a production facility in Ontario (along with its head office) with a 500 MW production capacity per year and also maintains other production facilities in China.
One of the worst offenders, JinkoSolar Holding Co., Ltd. (NYSE: JKS) saw its shares trading lower by 5.32 percent at $27.23. According to PV Magazine, the Chinese-based company's margin of dumping (the extent to which export price is lower than the normal value) was 112.6 percent.
Only a few other companies had a steeper margin of dumping. Trina Solar Limited (ADR) (NYSE: TSL) has a margin of dumping of 120.50 percent. Its shares were trading lower by 3.12 percent at $11.17.
Wuxi Suntech Power Co. Ltd's margin of dumping was 154.4 percent and was among the highest of any listed company.
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