REC Pares Gains After Scotching China Tariff Report: Oslo MoverMikael Holter
Renewable Energy Corp ASA pared gains in Oslo after the Norwegian polysilicon maker said anti-dumping duties in China haven’t been removed, scotching earlier reports that had sent its shares up to a two-month high.
Shares in REC, based in Sandvika near Oslo, traded 4.5 percent higher as of 1 p.m. in the Norwegian capital. The stock earlier climbed as much as 8.1 percent to 3.50 kroner, the highest intraday level since July 18, after speculation that China had temporarily removed tariffs on imports of solar-grade polysilicon, used to make solar panels.
The anti-dumping tariffs “have not been removed,” REC spokesman Mikkel Toerud said by mobile phone today. A statement from the Chinese Ministry of Commerce relates to a separate probe into subsidies and doesn’t affect the anti-dumping duties imposed on its products in July, he said.
“Chinese authorities have also investigated alleged illegal subsidies,” Toerud said. “That’s what’s called anti-subsidy or counter-veiling duties, and that’s what they’ve come out and said, at least for us, that they won’t impose additional duties on.”
The impact “is entirely neutral for us, because it doesn’t alter our situation as long as no so-called countervailing duties or anti-subsidy duties are introduced,” he said.
REC, which is separating its solar and silicon units to improve profits, has been battling falling prices amid industry overcapacity, forcing it to close all its operations in Norway. It’s also been facing rising costs with China, the biggest solar-module maker, imposing tariffs of as much as 57 percent on polysilicon shipped from the U.S. and South Korea as it seeks to stop the product being sold below cost.
“There were probably no expectations in the share price that something would come on anti-subsidies,” Arctic Securities ASA analyst Markus Bjerke said by phone from Oslo today. “So it’s entirely neutral that they would get 0 percent” in anti-subsidy duties, he said.