Rubber trade dispute widens as Mexico launches investigation
Mexico City – The Mexican government has initiated an investigation into dumping of emulsion styrene butadiene rubber (ESBR) from Poland, Korea, Japan and the US, Dynasol has reported.
The investigation, which could be widened to include European, South American and Asian producers, follows a series of similar actions in the ESBR market by authorities around the world.
Mexico's move is in response to a request by group company and Mexico’s only ESBR producer Industrias Negromex, according to an 18 Aug statement from Dynasol – a synthetic rubber JV between Repsol and KUO Group.
The complaint by Negromex referenced SBR rubber with compositions of butadiene with styrene containing 22.5% to 62.5% of butadiene by weight.
These materials, noted Dynasol, are classified within the 1500 series (non-extended cold polymerised polymers), 1700 (extended cold polymers with oil) and 1900 (high styrene), under an International Institute of Synthetic Rubber Producers system.
An official announcement about the initiation of the investigation was published 10 Aug in the Official Journal of the Federation (Diario Oficial de la Federación), said Dynasol.
Mexico’s ‘ministry of economy’ has set an investigation period from 1 Nov, 2015 to 31 Oct, 2016, and the period of damage analysis from 1 Nov, 2013 to 31 Oct, 2016.
The scope of the investigation could be extended to other emulsion synthetic rubber producers from Europe, Latin America and Asia if they are selling at less than “normal value” in Mexico, added Felipe Varela, current CEO of Negromex and Dynasol Group.
Elsewhere, the US is currently taking steps to protect its ESBR industry, having determined on 3 Aug that producers there had been ‘materially injured’ by imports from Brazil, South Korea, Mexico and Poland.
The Indian government has also recently imposed anti-dumping duties against SBR 1500 and SBR 1700 imports from Europe, South Korea and Thailand.
The highest duties were imposed on European imports, including ESBR supplied by Synthos Kralupy AS., Czech Republic and Synthos Dwory 7 Sp. Z. Oo, Poland with tariffs of around $208/tonne.
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