Views:2 Author:Site Editor Publish Time: 2019-03-26 Origin:Site
HC re-PSF market was unsmooth after the Chinese Lunar New Year, as it was not only affected by the lower HC PSF, but also affected by the imported HC re-PSF from Vietnam, Thailand, Malaysia, Indonesia and Nigeria. The prices of imported cargos were heard at 8,000-8,700yuan/mt, 1,000yuan/mt lower than domestic HC re-PSF offers. Though the volumes were limited at present, it has triggered worries over the market. Under such condition, there were rumors that anti-dumping investigation should be implemented, or domestic market players are hard to survive. It is reasonable for domestic market players to consider about the anti-dumping, but on the second thoughts, the feasibility is not large.
1. To have proof first according to anti-dumping rules
Anti-Dumping refers to the boycott of foreign goods dumped in the domestic market.
An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value. Dumping is a process where a company exports a product at a price lower than the price it normally charges in its own home market.
“Dumping” is defined as a situation in which the export price of a product is lower than its selling price in the exporting country. A discount sale, in the sense of ordinary trade, is not dumping. Where it is demonstrated that the dumped imports are causing injury to the competing industry in the importing country within the meaning of the WTO Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 (“Anti-Dumping Agreement”), pursuant to and by investigation under that Agreement, the importing country can impose anti-dumping measures to provide relief to domestic industries injured by imports.
To confirm the dumping needs three procedures: to confirm export price; to confirm normal price; to compare export price and normal price.
There is no problem to confirm the domestic price, but there must be price and volume proof to prove substantial injury.
In 2018, imported HC re-PSF were limited, and currently, it is heard about dozens of containers are imported. The influences on the market are mainly on the psychological level.
2. The anti-dumping investigation takes long time
For US, it takes more than one year to do the anti-dumping investigation on PSF, and for China, it may take longer time and the market may enter another cycle at that time.
3. From the perspective of the country
(1) Chinese government has always advocated to use trade remedy measures with prudence, restraint and regulations.
(2) With on-going the Belt and Road Initiative, will China have anti-dumping investigation on the imported HC re-PSF from Southeast Asian countries?
(3) In 2017, China encountered a total of 75 trade remedy investigations from 21 countries (regions), involving a total amount of 11 billion US dollars. China has become the country with the most anti-dumping investigations in the world for the 23rd consecutive year, and it also has become the country with the most countervailing investigations for the 12th consecutive year,. Responding to anti-dumping is exhausting, and it is prudent to initiate anti-dumping.
(4) China’s recycled polyester fiber market has run with difficulty, and it is hard to face the situation at present.
In general, the rumors about China to have anti-dumping investigation are mostly the players’ abreaction. Some producers have to cut prices in face of the difficult situation, while some are initiative to cut prices to prevent the imports of HC re-PSF, in order to have a relatively smooth operation in the second half year.