China Launches Anti-Dumping Probe on India Imports
12 July 2017 China’s Ministry of Commerce is conducting an anti-dumping investigation targeting metaphenoxy benzaldehyde (MPB) imports from India, according to an article by intelligence and analysis provider Tranalysis.
China’s Weifang Runnong Chemical claims that India exported MPB at a lower price than the normal value, which has led to continuous price decreases in China’s domestic market. The company has been responsible for a large share of China’s MPB output, which justifies the application for the anti-dumping investigations, according to the article. Weifang Runnong’s share of China’s total output of MPB climbed from 35.8% to 59.16% from 2013 to 2016.
Beside Weifang Runnong, Jiangsu Yangnong, Hubei Qinong, and Shandong Wucheng are the leading companies in China’s MPB market. According to the companies, India’s cheap exports have caused the sales price of MPB go down constantly from 2013 to 2016. In that time span, the price fell down almost $1,000 per tonne.
“In this context, the top producer Weifang Runnong has suffered continual loss, negative cash flows, and falling operating rates, as workers for its MPB production line decreased by around 50% from 2013 to 2016. Hubei Qinong and Wucheng Yinuo even suspended production respectively in 2013 and 2015,” Tranalysis said, adding: “If the anti-dumping duty on the imports from India are confirmed by the MOC, the domestic price is very likely to rise again, due to the higher production costs for pyrethroids.”
MPB is listed under the Customs Import and Export Tariff of the People’s Republic of China and the tariff number is 29124990. The investigation should be concluded before June 8, 2018, and could be prolonged to December 8, 2018, in some cases.
Metaphenoxy benzaldehyde is used to synthesize cyhalothrin, cypermethrin, beta-cypermethrin and other materials used in pyrethroids. The synthesized products are used in the manufacture of pyrethroid insecticides and other pesticide preparations.China’s demand for MPB has been growing since 2013, with domestic consumption increasing by 37.84% between 2013 and 2016. India-made MPB has so far taken up a leading position in the domestic market, Tranalysis said.
Source: Tranalysis
Get The Newsletter Today!
