China Drying Network News The Ministry of Commerce issued an announcement deciding to implement temporary anti-dumping measures against imported toluene diisocyanate (TDI) originating in the European Union and impose a margin of 6.7% to 37.7% on relevant companies. After the announcement, a number of industry sources told reporters that China’s provisional anti-dumping measures against the European Union’s TDI will reduce China’s TDI imports to a certain extent, but the impact on the current domestic TDI market is relatively limited.
Lu Guili, deputy secretary-general of the China Polyurethane Industry Association, told reporters that many multinational corporations have transferred a large amount of TDI production capacity to China, and that Chinese domestic TDI production companies are also actively expanding their production capacity. In the case of a rapid increase in domestic production capacity, China is from the European Union, etc. The proportion of imported TDI in the region will be reduced. Therefore, the levying of margin on EU imports of TDI will not fundamentally affect the supply and demand pattern of China's TDI.
In the past 10 years, China has taken anti-dumping measures against imports of TDI from the United States, Japan, and South Korea, and adjusted the anti-dumping tax rate several times. In this regard, a person in charge of the business management department of a TDI production company in Hebei said in an interview with reporters that the temporary anti-dumping measures will play a positive role in maintaining the normal market order of TDI products and help create a fair and regulated market environment. He believes that the current TDI market conditions are determined by the market supply and demand relationship, so the impact of this anti-dumping measures on the domestic product market may not be great.
According to survey data released by the Ministry of Commerce, China's TDI imported from the European Union in 2011 was 28,515.26 tons, a decrease of 25.86% compared with 2010; its share of the domestic market was 6.04%, a decrease of 2.32 percentage points from the previous year.
"From a ratio point of view, China's TDI imports from the European Union are not very large. At present, the gross profit margin of TDI dealers is at a low level. It is expected that the implementation of the temporary anti-dumping measures will have little impact on the company's overall performance." A TDI trading company leader Indicated.
According to industry insiders, China currently imposes anti-dumping duties on major TDI producing countries in the world, and its import share will further shrink. With the rapid expansion of domestic TDI production capacity, the future competition in China's TDI market will be dominated by competition among several domestic TDI companies. For local TDI companies, only by innovating in technology, management, and marketing, reducing production costs, and improving product quality can they take the initiative in the competition.
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