EU proposes withdrawal of anti-dumping duties on PET from UAE

29 July 2010 13:24  [Source: ICIS news]

LONDON (ICIS)--The EU is proposing to terminate provisional anti-dumping duties (ADD) on polyethylene terephthalate (PET) against the United Arab Emirates (UAE) and to review anti-subsidy duties (ASD) against UAE, Pakistan and Iran, the European Commission said on Thursday.

“We proposed to terminate the ADD proceeding and have given the interested parties 10 days to express their views on it...A [final] decision will not be taken before October,” the source said.

In response to the announcement, UAE producer JBF said: “This will vindicate JBF's position on the matter and will allow our products to be exported to EU with zero ADD.”

JBF said it was still hopeful of a reduction in the remaining ASD of €42.34/tonne ($55/tonne).

Provisional ASD were imposed on 1 June for a period of four months. The same date saw the provisional ADD being imposed for a period of six months.

A final decision would be announced on 1 October, according to the Commission spokesperson, who declined to comment on details regarding a possible review of the ASD.

“[The EU]... [is proposing to] reduce the ASD for Pakistan by half. For Iran, they have reduced the ASD by €2-3/tonne,” a customer explained on Wednesday. 

If speculation from industry players came to fruition, Pakistan’s ASD would be reduced by half to just over €40/tonne and Iran would be charged “close to €140/tonne”.

“This would put Pakistan and UAE on level playing fields,” the buyer said.

The provisional duties were imposed at the beginning of the traditional peak season for PET bottlers. Variations in weather conditions resulted in lacklustre sales in some parts of Europe and heightened interest in other parts.

“I would not argue that demand is not very great, but supply is also not very great, so the ratio is quite positive,” according to a local producer.

If the Commission's proposals became definitive, market dynamics were likely to change, sources said.

“It will change the market again...Iranians did not ship a single gramme into Europe since the ADD and ASD were announced. The others did here and there but also not so much,” a trader said.

Prices in Europe though, fell by around €30/tonne in July, as the peak season closed in, according to ICIS data.

“I want the committee and the counter committee to consider very carefully the views of the PET industry and to make the appropriate judgement and decision,” an interested party said.

The Commission's provisional ADD was applicable to UAE only at a rate of €54.80/tonne and a provisional countervailing duty was imposed on Iran at €142.97/tonne, Pakistan at €83.64/tonne and UAE at €42.34/tonne.

The ADD investigation, which covers the period 1 July 2008 to 30 June 2009, was launched on 3 September 2009 following a complaint by the PET Committee of Plastics Europe.

“[ADD] was not in the common interest,” another source pleased with the developments, added.

($1 = €0.77)

ICIS has launched a weekly PET (Middle East) pricing report. For more information contact Nadine Spoeri
For more on PET visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Caroline Murray
44208 652 3214

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