US, Europe butyl glycol makers reduce China allocations on ADD

01 February 2013 07:32  [Source: ICIS news]

SINGAPORE (ICIS)--US and European butyl glycol producers plan to cut supply allocations  to China, which has started charging up to 18.8% antidumping duty (ADD) on their products, with some diverting cargoes to southeast Asia, industry sources said on Friday.

“We are planning to cut butyl glycol allocations to China by about 20-30%...China will be the last choice for us,” said a key US-based producer.

US-based producers like Dow Chemical and Eastman are all planning to reduce allocation from the US, and plan to sell outside of China in southeast Asia and India, said traders and producers.

A key European producer is looking at trimming its supply to China this year by a third to 10,000 tonnes, a source at the company said.

“We have not been [selling] product to China and in future customers will not accept higher prices [due to the ADD], our exposure has gone down in China,” said another key European producer.

China implemented duties of between 9.3-18.8% on butyl glycol imports from Europe and the US effective 28 January this year upon establishing a case of dumping.

The highest ADD rate applies to butyl glycol imports from Germany’s BASF, while a 14.4% rate was slapped to imports from US’ Dow Chemicals.

A 10.8% duty applies to Sasol Solvents Germany, while a 9.3% rate will apply to BGE from INEOS Chemicals Lavera (9.3%), BASF SE (18.8%), according to China’s Ministry of Finance.

For products from US producers Eastman and Equistar Chemicals, a 10.6% ADD applies.

“With China implementing the ADD, more cargoes will [continue to] come to southeast Asia, while producers in Japan, South Korea and Malaysia will sell to China [as they enjoy zero ADD],” said a southeast Asia-based distributor.

By: Mahua Chakravarty
+65 6780 4359

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