Waaree Energies, Premier Energies, Vikram Solar: US finalises steep duties on Indian solar imports; stocks in focus

Shares of solar manufacturers or exporters with meaningful US exposure, such as Waaree Energies, Premier Energies and Vikram Solar, are expected to be in the spotlight on Tuesday, September 15, when trading resumes after a long weekend.

The stocks will be in focus as the US has finalised high anti-dumping and countervailing duties on the import of solar cells and panels from India and two other countries, contending that producers and exporters benefited from unfair government subsidies and harmed American industry.

The US Department of Commerce, on Friday, announced its final affirmative determinations in the antidumping duty (AD) and countervailing duty (CVD) investigations of crystalline silicon photovoltaic cells from India, Indonesia, and Laos.

It also set countervailing duty rates of 126.09% for Indian producers, between 73.25 and 173.7% for Indonesian producers, and between 82.03% and 153.67% for producers from Laos.

The action followed a petition filed by The Alliance for American Solar Manufacturing and Trade seeking investigations into allegedly illegal trade practices by largely Chinese-owned manufacturers operating in Laos and Indonesia, as well as companies headquartered in India.

#Stocks likely to be in focus

Waaree Energies

Waaree Energies is likely to attract significant investor attention given its sizeable exposure to the US solar market and its investments in the country.

The company has a US subsidiary, Waaree Solar Americas, and has been expanding its manufacturing and supply capabilities in the US.

The stock has also reacted sharply to earlier developments around US trade duties on Indian solar imports, making it one of the key names to watch following the latest announcement.

Premier Energies

Premier Energies is among the Indian companies directly named in the US Department of Commerce’s final anti-dumping duty determination.

Premier Energies Photovoltaic Private Limited has been assigned a final dumping margin of 123.04%.

Given its direct mention in the investigation and its presence in the solar cell and module manufacturing space, the company’s shares are likely to remain in focus as investors assess the potential impact of the US duties on its exports and operations.

Vikram Solar

Vikram Solar is another major Indian solar cell and module manufacturer that could remain in focus following the US decision.

While the company does not appear to be specifically named in the final Commerce Department table, it has been among the Indian solar manufacturers closely tracked by investors in connection with the US anti-dumping and countervailing-duty investigations.

Any potential impact on Indian solar exports to the US could therefore have implications for the company and the broader listed solar manufacturing space.

What lies ahead?

The US International Trade Commission (USITC) will now examine whether the subsidised imports harmed the US industry and make a final injury determination in the next 45 days. The final injury vote is expected on October 14.

If the USITC's final determination is affirmative, the Department of Commerce will issue anti-dumping and countervailing duty orders by November 2 on the basis of the rates mentioned in Friday's findings.

If the USITC's determination is negative, the investigation will be terminated.

"These determinations confirm that producers and exporters from these countries have been dumping solar products into the US market at unfairly low prices and have benefited from countervailable subsidies, causing material injury to the domestic solar manufacturing industry," The Alliance for American Solar Manufacturing and Trade said in a statement.

What is an anti-dumping duty?

It is an additional import duty imposed when a country believes a foreign company is selling a product in its market at an unfairly low price, often below its normal or domestic-market price. The aim is to protect local manufacturers from being undercut by cheaper imports.

What is a countervailing duty (CVD)?

This is an additional import duty imposed when a country finds that foreign manufacturers have received government subsidies or other financial support that gives them an unfair advantage. The duty is intended to offset the benefit of those subsidies and protect domestic producers.