Europe ethanolamines producers confident of US ADD extension

23 January 2012 19:13  [Source: ICIS news]

LONDON (ICIS)--The European Commission should renew an anti-dumping duty (ADD) on US-originated ethanolamines material after the current measures expired on 22 January, EU domestic producers said on Monday.

The Commission gave a notice of initiation of an expiry review in the Official Journal of the European Union on 21 January. The investigation should be concluded within 15 months – during which time, the current duties will remain in place.

A request for review had been lodged on 21 October 2011 by three European manufacturers, which fear the expiry of the tariffs might lead to a continuation of dumping and consequent injury to EU industry.

The Commission said in its 21 January notice that the dumping margin – calculated by comparing domestic prices in the country concerned with the export prices to the EU of the relevant product – is large enough to justify a review.

“We are confident that the current dumping duties will be prolonged after the investigation period,” one major European producer said.

Evidence provided by chemicals manufacturers Germany-based BASF, Switzerland-headquartered INEOS Europe and Hamburg-based Sasol Germany – which together comprise more than 50% of EU production – shows that the volumes and prices of the imported products concerned have continued to have a negative impact on the prices charged by EU suppliers.

“The fact that it is going into the review phase is a success,” said one producer.

Duties of some form have been imposed on US manufacturers since 1994, and were most recently renewed in January 2010 – after the share of US imports in the EU market had fallen from 24% to 14% between 2005 and September 2008 – at a rate of €59.25/tonne ($46.22/tonne) on US-based Dow Chemical, €69.40/tonne on INEOS Americas and €111.25/tonne on US-headquartered Huntsman and all other companies.

The Commission had said then that US producers’ spare capacity and Chinese anti-dumping duties imposed on the US were among the reasons for continuing with the EU tariffs.

Ethanolamines are used in the production of surfactants and textiles. Monoethanolamine (MEA) December contract prices were pegged at €1,400–1,450/tonne FD (free delivered) NWE (northwest Europe).

($1 = €0.78)

For more on ethanolamines visit ICIS chemical intelligence

By: Amandeep Parmar
+44 208 652 3214

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