China issues provisional anti-dumping measure on TDI imports from EU
China has started to impose provisional anti-dumping charges on imported toluene diisocyanate, or TDI (TDI 80/20) from the European Union as of Nov.13, 2012 after a preliminary finding by the Ministry of Commerce that the EU has been "dumping" it on the Chinese market.
TDI is a chemical used to make many household products, including foam for furniture cushions and some sealants.
The probe was launched on Mar. 23 in response to a petition filed in February by China's domestic TDI players, such as Cangzhou Dahua Co, Ltd, Gansu Yinguang Juyin Chemical, Gansu Yinda Chemical, Liaoning Beifang Jinhua Polyurethane Corp, and Cangzhou Dahua Juhai Co.
According to the announcement on Tuesday, during Industry injury investigation period from 2008 to 2011, TDI under investigation held increasing market share in China while the prices take on decreasing trend, which helped pare domestic TDI prices in 2009 and exerted downward pressure on domestic TDI prices in 2010 and 2011.
Likewise, affected by drag proved by imported TDI from EU, domestic TDI prices fell by 29.25%, 3.05%, 16.57% year on year in 2009, 2010 and 2011 respectively.
EU exporters, including Bayer MaterialScience AG, Perstorp France and Dow Chemical Tarragona, were found selling the product as much as 37.7 percent below normal market prices and that such dumping "has hurt domestic producers", according to an announcement on the ministry's website on Tuesday.
EU TDI exporters will be obliged to pay deposits by different rates, from 6.6% to 37.7%. The deposits must be paid to Chinese customs according to the dumping margins of the exporters.
In addition, a final decision on imposing antidumping duties on TDI imports will be made once the year-long investigation is completed.
TDI is a chemical used to make many household products, including foam for furniture cushions and some sealants.
The probe was launched on Mar. 23 in response to a petition filed in February by China's domestic TDI players, such as Cangzhou Dahua Co, Ltd, Gansu Yinguang Juyin Chemical, Gansu Yinda Chemical, Liaoning Beifang Jinhua Polyurethane Corp, and Cangzhou Dahua Juhai Co.
According to the announcement on Tuesday, during Industry injury investigation period from 2008 to 2011, TDI under investigation held increasing market share in China while the prices take on decreasing trend, which helped pare domestic TDI prices in 2009 and exerted downward pressure on domestic TDI prices in 2010 and 2011.
Likewise, affected by drag proved by imported TDI from EU, domestic TDI prices fell by 29.25%, 3.05%, 16.57% year on year in 2009, 2010 and 2011 respectively.
| Year | Imports?? (tons) | Imports Market Share | Imports Weighed Average Prices (RMB/ton) | Homemade Goods Weighed Average Prices (RMB/ton) |
| 2008 | 21482.59 | 6.48% | 31786.85 | 27705.05 |
| 2009 | 33804.42 | 8.22% | 15540.4 | 19602.43 |
| 2010 | 38463.13 | 8.36% | 19141.48 | 19004.71 |
| 2011 | 28515.26 | 6.04% | 16376.01 | 15856.08 |
| Source：MOFCOM | ||||
| Note: weighed average prices are based on USD CIF China prices | ||||
EU exporters, including Bayer MaterialScience AG, Perstorp France and Dow Chemical Tarragona, were found selling the product as much as 37.7 percent below normal market prices and that such dumping "has hurt domestic producers", according to an announcement on the ministry's website on Tuesday.
EU TDI exporters will be obliged to pay deposits by different rates, from 6.6% to 37.7%. The deposits must be paid to Chinese customs according to the dumping margins of the exporters.
| EU TDI Exporter | Anti-dumping Rate |
| Bayer MaterialScience | 19.20% |
| Zaklady Chemiczne ZACHEM S.A. | 18.10% |
| Borsodchem Zrt. | 6.60% |
| Perstorp France | 37.70% |
| Dow Chemical Tarragona | 37.70% |
| All Others | 37.70% |
| Source: MOFCOM | |
In addition, a final decision on imposing antidumping duties on TDI imports will be made once the year-long investigation is completed.
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