Mexico begins dumping probe on E-SBR from US, Poland, Korea, Japan

18 August 2017 23:01 Source:ICIS News

HOUSTON (ICIS)--The Mexican government has initiated a dumping investigation on imports of emulsion styrene butadiene rubber (E-SBR) from the US, Poland, South Korea and Japan, according to a Friday statement from the company that requested the probe.

Industrias Negromex, Mexico’s sole E-SBR producer, requested an investigation on 11 April, alleging that certain E-SBR imports from these four countries were being sold in Mexico at less than fair value.

A notice on the investigation was published on 10 August in the Diario Oficial de la Federacion (Official Journal of the Federation).

Negromex alleged that from 1 November 2015 to 31 October 2016, certain E-SBR imports from these four countries were priced at levels that harmed domestic producers.

E-SBR grades included non-oil cold-polymerised 1500 series, oil-extended cold-polymerised 1700 series, as well as high-styrene 1900 series.

Negromex CEO Felipe Varela said that the investigation could extend to other E-SBR producers from Europe, Latin America and Asia if they are selling at less than fair value in Mexico.

US E-SBR market participants said on Friday that they were still digesting the news and evaluating potential effects.

One source expected minimal impact, saying the US sells “so little” to Mexico.

Earlier this month, the US government determined that antidumping duties would be imposed on E-SBR imports from Brazil, South Korea, Mexico and Poland.

That petition had been filed in July 2016 by US E-SBR producers Lion Elastomers of Texas and East West Copolymer of Louisiana.

Since then, East West has filed for bankruptcy protection, and the Baton Rouge plant in Louisiana has been sold to Lion.

Additional reporting by Al Greenwood and Jessie Waldheim

By Tracy Dang