28 April 2010 11:21 [Source: ICIS news]
SINGAPORE (ICIS news)--Taiwan-based nylon producers will have an edge over their co-producers in the US, the EU and Russia with the Chinese Ministry of Commerce recently finalising the nylon antidumping duty (ADD), sources said on Wednesday.
The Taiwan producers would also have a slight advantage over their China-based counterparts, with the ministry launching an investigation into caprolactam imports from the EU and the US, the sources added.
Caprolactam is an intermediate primarily used in the production of nylon 6 fibres and resins.
Most major Taiwan-based nylon chips producers have an ADD rate of 4.0-4.3% – the lowest among most of the countries exporting to China.
"The Taiwan rates are more consistent and reflect a steadier presence in the [China] market," an industry source said. Whereas, the US, the EU and Russia had much higher rates and lesser exports into China on a spot basis, the source added. (please see table below)
According to a major Taiwan-based nylon producer some companies that have higher rates can direct their cargoes through other companies to China that do not have high ADD rates.
Meanwhile, the Ministry of Commerce of the People's Republic of China (MOFCOM), launched a one-year antidumping investigation into imports of caprolactam from the EU and the US on 22 April, in response to complaints from domestic producers.
Many Taiwan-based nylon producers welcomed the capralactam ADD investigation, and said they would have slight advantages when buying feedstock caprolactam from the EU and the US, compared with their China co-producers.
"The provisional rates are still not out yet, but it does have a significant impact on the industry, as the EU/US accounts for around 40% of the import to China in 2009," an industry source said.
Another industry source said: "Whether we can get lower caprolactam prices next time, it is still too early to say. It is still dependable on the ADD rates and raw material costs."
The finalised results of the antidumping duty on nylon imports were released on 21 April, according to the official website of MOFCOM. The rates are mostly unchanged from the provisional rates for most key producers and are as follows:
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