With the ADD gone the company will find it very difficult to compete.
Management said that the chinese manufacturers get gas and elec at subsidised rates. Xinyi has announced a massive expansion of 16*1000 tpd lines from the current 11800tpd. The way I see it is that the Borosil has been in solar glass manufacturing for a long time but they didnt make money till govt. took protectionist steps. Now the direction is clear from the govt that they are looking at the larger picture and will not bother much about something that contributes 5-10% in the total value chain. The timing is especially bad for the company all raw materials are going up, shipping worries are easing. I dont think the company will be able to maintain the margins it saw in Q1 (which already is quite low).
I sold after the company’s announcement.
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