• 3 minutes Natural gas is crushing wind and solar power
  • 6 minutes OPEC and Russia could discuss emergency cuts
  • 8 minutes Is Pete Buttigieg emerging as the most likely challenger to Trump?
  • 11 minutes Question: Why are oil futures so low through 2020?
  • 13 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 3 hours Oil and gas producers fire back at Democratic presidential candidates.
  • 50 mins "Criticism of migration will become a criminal offense.  And media outlets that give room to criticism of migration, can be shut down." - EU Official to the Media.
  • 4 hours Saudi Aramco launches largest shale gas development outside U.S.
  • 9 hours So the west is winning, is it? Only if you’re a delusional Trump toady, Mr Pompeo, by Simon Tisdall
  • 15 hours Peak Shale Will Send Oil Prices Sky High
  • 10 hours CDC covid19 coverup?
  • 7 hours Charts of COVID-19 Fatality Rate by Age and Sex
  • 13 hours What Is Holding Back Geothermal Heating and Cooling?
  • 1 day Fight with American ignorance, Part 1: US is a Republic, it is not a Democracy
  • 3 hours Huawei ≠ iPhones? UAE Used Cyber Super-Weapon To Spy On iPhones Of Foes
Why Venezuela’s Oil Based Cryptocurrency Is Still Alive

Why Venezuela’s Oil Based Cryptocurrency Is Still Alive

governments new digital oil-backed currency,…

Major Bank Sees Abysmal Demand Growth For Oil

Major Bank Sees Abysmal Demand Growth For Oil

Oil prices could bounce around…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

China Looks to Taiwan to Avoid U.S. Tariffs on Solar Panels

China Looks to Taiwan to Avoid U.S. Tariffs on Solar Panels

Taiwan, known as the republic of China, collaborates deeply with its larger neighbour in global high tech supply chains, and it is only natural that as China faces 31% tariffs on solar cells they export to the US, they will turn to Taiwan for help.

Daniel Tzeng from Fubon Securities said that he has already noticed the many Taiwanese solar manufacturers have already experienced an increase in orders from China, and share prices have also risen recently due to optimism that the nations solar industry will grow considerably.

Aaron Chew of Maxim Group expects “this to be a widespread strategy used by Chinese solar makers this year and maybe into next.” He predicts a “boost in revenues and possibly even pricing for Taiwanese solar makers in 2012.”

However Tzeng warns that this development may not be good for the Taiwanese, or indeed the global solar industry, because solar cell prices have fallen so much that many solar companies are operating on tiny margins, reporting losses in Q1 which are expected to grow in Q2; increasing the orders will just result in even greater losses.

Due to massive oversupply in the market solar cell prices fell 50% in 2011 and have so far fallen 20% this year. Many fear that the increase in orders from China will force Taiwanese manufacturers to increase production levels, restoring the 30% capacity reductions they made last year. An increase of this magnitude will affect the global solar market as Taiwan is the second largest producer of solar cells in the world.

Worse is the fact that as Taiwan increases its production levels, China will not be reducing their own, but instead are more likely to continue at their current rate and merely look for new markets for their cells, such as Europe or China itself.

A wave of bankruptcies can be expected as many solar panel makers will not be able to operate profitably with such high supply compared to demand driving down the prices even further, to unsustainable levels.

By. James Burgess of Oilprice.com



Join the discussion | Back to homepage


Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News