Beijing – China’s Ministry of Commerce (MOFCOM) has started an anti-dumping investigation into EPDM imports from the US, Korea and EU, the ministry announced 19 June.
The investigations were launched following a complaint, filed on 8 May, by Jilin Petrochemical, an affiliate of China National Petroleum Corp. (CNPC), and Shanghai Sinopec Mitsui Elastomers.
The two applicants’ EPDM production took up over half of China’s total in both 2017 and 2018, said a MOFCOM statement.
The investigation is expected to finish by 19 June, 2020 but can be extended under special circumstances to 19 Dec, 2020, said MOFCOM.
The dumping period is set as the calendar year of 2018. The injury period dates from 1 Jan 2015 to 31 Dec, 2018.
According to the companies’ application, the US, Korea and EU’s shipments accounted for 79% of China’s total EPDM imports of 234,000 tonnes last year, including 45% from the US.
The 2018 prices for EPDM imports from those regions dropped by 17%, 11% and 6% respectively compared with 2015.
In addition, such 2018 prices are below each region’s domestic market prices, said the application.
The US, for instance, had $3,900-per-tonne domestic price last year, compared with $1,936-per-tonne for exports to China.
The margin of dumping for those regions in 2018 are 104.5%, 24.5% and 31.7% respectively, said the application, adding that such dumping has resulted in significant deficit and low utilisation rates of the applicants since 2015.
China produced 191,000 tonnes of EPDM last year, despite having a nameplate production capacity of 370,000 tonnes, said the application.