Friday, June 28, 2013

China takes anti-dumping measures on Indian and Japanese pyridine import

On May 27, 2013, the Ministry of Commerce of P. R. China issued an announcement that China preliminarily judged that Indian and Japanese companies dumped pyridine to China, which damaged China's pyridine industry. The certain period of this pyridine dumping investigation was July 1, 2011-June 30, 2012, and the certain period of China's pyridine industry injury was Jan.1, 2008-June 30, 2012.
From now on Chinese companies import pyridine from those companies will be levied guarantee funds by China's customs based on their margin of dumping. In detail, as for Indian companies, the guarantee funds levy ratio of Jubilant Life Sciences Limited is 24.6%, while that of other Indian companies is 57.4%. As for Japanese companies, the guarantee funds levy ratio of all Japanese companies who exported pyridine to China is 47.9%, including Koei Chemical Co., Ltd., Daicel Corporation and Nippon Steel Chemical Co., Ltd., etc. (Guarantee funds=Import price*Guarantee funds levy ratio *1+VAT rate of imported goods )

According to the Ministry of Commerce's announcement, this anti-dumping investigation on pyridine products in China was initiated by Chinese pyridine manufacturers. China's four major pyridine manufacturers, namely Anhui Guoxing Biochemical Co., Ltd., Nanjing Redsun Biochemical Co., Ltd., Weifang Luba Chemical Co., Ltd. and Nantong Reilly Chemical Co., Ltd., submitted the application for investigation formally on Aug. 2, 2012.
The four applicants indicated that Japanese and Indian companies dumped pyridine products in China during 2008–H1 2012 by ways of increasing quantity and decreasing price. Owing to the low-price dumping, as indicated by the four applicants, the total market share of pyridine products from Japan and India has floated around 20% in China these years, which oppressed Chinese pyridine industry severely, for example, causing price inhibition, oppression on gross profit margin, sluggish investment return, employment atrophy and so forth. 
Shown by the data from the Ministry of Commerce's announcement, China's pyridine capacity and output have kept increasing in recent years. The domestic sale volume and revenue are also experiencing an increase. However, oppressed by the low price of pyridine from Japan and India, domestic pyridine manufacturers had to lower their pyridine prices, which caused slipped gross profit these years. In detail, the domestic gross profit of pyridine was about USD4.74 million with a year-on-year decrease of 39% in 2011, although the sale revenue saw a year-on-year growth of 14%.
Fortunately, affected by the investigation, the domestic pyridine price has seen a continuous uptrend from Aug. 2012 to early June 2013. In detail, the ex-factory price of pyridine 99.9% kept increasing from USD4,145/t in Aug. 2012 to USD5,531/t in May 2013 without sharp fluctuations. On May 31, 2013, the delivery price of pyridine in Shanghai Port from Jubilant Life Sciences Limited was about USD6,520/t (RMB40,000/t), while it was about USD4,824/t (RMB30,000/t) in early Nov. 2012. It's predicted that with increasing profit, pyridine business also stimulates pyridine companies' financial performance in 2013.

The news above was sourced from Herbicides China News issued by CCM in June

Table of Contents of Herbicides China News 1306:
Nanjing Redsun and Hubei Sanonda see increase in stock price
Noposion's raising projects start to get profit
CAC Nantong completed 400t/a fluorochloridone and 400t/a asulam TC production lines
Anhui Futian plans for 600t/a mesotrione TC production line
Jiangsu CF to construct 2,4-D project
Lianyungang Langxuan aims at 2,4-D market
China's new pesticide enterprise, Yancheng Taihe, with USD17.67 million project
China takes anti-dumping measures on Indian and Japanese pyridine import
Pendimethalin sees mediocre development in China
Atrazine experienced intense supply in early June 2013
Export volume of picloram increased in 2012
Export business of isopropylamine facing slightly gloomy situation
17 new registrations of herbicide technical in China in May 2013
Price Review in June 2013

Herbicides China News, a monthly publication issued by CCM on 15th, provides you with the latest occurrences, exclusive analysis on the market trend as well as professional reviews on competitiveness of companies, products and relative industries in China’s herbicide industry.

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