05 June 2008 07:24 [Source: ICIS news]
SINGAPORE (ICIS news)--Paraffin wax (P-wax) makers in China are awaiting the results of the European Union’s (EU) antidumping investigations, which began in February this year with many of them expressing their resentment over the probe, said market players on Thursday.
China exported over 44 tonnes of candles, valued at $300m (€195m), in 2007, and half of it went to Europe, which is one of its major markets, said Zhang Zhibiao, spokesman for the China Chamber of Commerce for Import and Export of Foodstuffs, Native Produce and Animal Byproducts.
Chinese candle makers are no strangers to anti-dumping trials. In 2006, when the US imposed a 108.3% anti-dumping tariff on candles from China, many candle makers moved base to southeast Asian countries like Thailand, Vietnam and Malaysia.
"However the investigations resulted in caution between the candle makers to discuss new contracts with the EU, since the candle makers were afraid of a re-enactment of what happened [in the US] in 2006, where many candle manufacturers had to pay backdated duties," a Thailand trader added.
However, many sellers were opposed to paying anti-dumping duties as they believed it was not in the spirit of fair trade, and would only serve to protect the few uncompetitive candle makers in the EU.
"They can’t hold a candle to us," a China-based trader commented.
P-wax producers include PetroChina, Sinopec and Pertamina. Paraffin wax is used in the production of candles, in the food packaging and petroleum jelly industries.
($1 = €0.65)
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