China's TDI market little affected by antidumping levy on EU imports

19 November 2012 07:41  [Source: ICIS news]

SINGAPORE (ICIS)--China's temporary antidumping measure for toluene diisocyanate (TDI) imports from the EU has limited impact on the Chinese market because of the small volume of imports from the EU, a market source said on Monday.

China implemented the temporary antidumping measure on 13 November on imports of TDI originating in the EU, according to the country's Ministry of Commerce.

A security deposit ranging from 6.6% to 37.7% will be levied on products imported from producers such as Bayer MaterialScience and Dow Chemical Tarragona, according to the ministry.

However, this will not impact significantly on the domestic supply-demand situation as TDI imports from the EU and other countries have decreased after a sharp increase in capacity in the domestic market, according to Lv Guohui, the deputy secretary-general of China Polyurethane Industry Association (CPUIA).

Many multinational corporations have shifted a large part of their TDI production to China, while Chinese factories have expanded their TDI production capacity, Lv added.

Despite the limited impact on the supply-demand situation, the temporary antidumping measure is expected to help to stabilise the prices in the domestic TDI market, a Hebei-based TDI producer said.  

China imported 28,515 tonnes of TDI from EU in 2011, down by 26% from 2010. Meanwhile, 2011 TDI imports from EU accounted for 6.04% in the domestic market, down by about two percentage points compared with 2010, according to data from the Ministry of Commerce.

In the future, Chinese TDI producers are expected to mostly face domestic competition, with imports shrinking and domestic capacity expanding rapidly. Local producers must then cut costs and improve their products’ quality through innovations in technology, management and marketing to be competitive, an industry market source said.

Additional reporting by Fanny Zhang



By: Viola Pan
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