China hits halobutyl imports from US, EU, Singapore

Beijing – China  has imposed temporary anti-dumping duties on halogenated butyl rubber (HBR) imported from the US, EU and Singapore, following the preliminary determination by its commerce ministry (MOFCOM).

The ‘deposit’ rates, which were introduced on 20 April, were set as follows:

US:

1. Exxon Mobil Corp.: 66.5%

2. All Others: 66.5%

EU:

1. ExxonMobil Chemical Ltd: 63.7%

2. Arlanxeo Belgium NV: 30.9%

3. All Others: 63.7%

Singapore

1. Arlanxeo Singapore Pte Ltd: 26.0%

2. All Others: 66.5%

The investigation was started in August 2017 upon application by Chinese HBR makers, Zhejiang Cenway Materials and Panjin Heyun New Materials. The two companies account for more than half of the country’s total production.

According to MOFCOM’s report, imports from the regions under investigation took up a 43% share in the China market in the first quarter of 2017. During this time, it said, their average price was €2,360 (18,200 yuan) per tonne.

Chinese HBR makers’ prices in the market during the same period averaged between €2,075 per tonne and €2,334 per tonne.

Both imports and domestic production showed a sharp decline in price during the investigated period since 2014, added MOFCOM.

Imports have competitive advantages over domestic products and downstream clients expects the latter to have a lower price, forcing them to sell even below cost, said the  report.

China’s growing demand upped domestic HBR makers’ sales volume but profitability and return-on-investment have been deteriorating, the report added.