On August 6 this year, the "price commitment" agreement between China and the European Union regarding the trade dispute over Chinese photovoltaic (PV) products exported to Europe officially took effect. This agreement aimed to resolve tensions by setting minimum import prices for PV panels, but its impact on domestic manufacturers remains mixed. A recent survey conducted by the Henan Survey Team of the National Bureau of Statistics sheds light on the current state of the industry in the region.
The survey involved 26 PV companies across 12 cities, including Zhengzhou, Kaifeng, Luoyang, and Pingdingshan. Out of these, only 18 valid responses were received, as some firms had already ceased operations or shifted their focus. Specifically, seven companies have stopped production entirely, while one has transitioned into a different business sector. This indicates a growing trend of instability within the industry.
According to the findings, more than half of the surveyed companies are currently operating at a loss. Among the 18 active companies, 10 reported losses in August, representing 55.6% of the total. However, this is an improvement compared to July, when the loss rate was 61.1%. Despite this slight recovery, the overall financial situation remains challenging. Six companies managed to turn a profit, accounting for 33.3%, while one company reported a modest gain.
Looking ahead, the outlook for the PV industry is not very encouraging. Only 44.4% of the companies expressed optimism about the market, while 27.8% considered the outlook to be neutral, and another 27.8% were pessimistic. This suggests that many businesses are struggling to adapt to the new pricing rules and the broader economic pressures affecting the sector.
The survey highlights the ongoing challenges faced by Chinese PV manufacturers, particularly in the wake of international trade agreements. While some firms are managing to stay afloat, the industry as a whole continues to face uncertainty, with many companies questioning the long-term viability of their operations. As the global demand for renewable energy grows, the need for sustainable business models becomes even more critical for the survival of these companies.
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