The Ministry of Commerce of China has started an anti-dumping probe into imports of polyvinyl chloride (PVC) from the US. The probe is based on a request submitted by local producers: Xinjiang Zhongtai Chemical, Shaanxi Beiyuan Chemical, Xinjiang Tianye, Yibin Tianyuan, and Tianjin Dagu Chemical. They were concerned that large imports of US PVC might hurt domestic manufacturers.
The investigation covers the whole year of 2019. It is expected to last for 12 months starting from September 25, with an option to extend by six months under certain circumstances. The probe came nearly a year after China removed anti-dumping duties on PVC from the US, South Korea, Taiwan, and Japan.
China is the second-largest export destination for US PVC, after Canada. According to data from customs administration, China imported 297,000 tons of US PVC last year. Chinese importers continued to import US PVC even as the government began levying 11%-83% duties in 2003 as they could recoup the cost by exporting products made with the materials.
Re-exporting converters account for the majority of China’s US PVC imports. Hence, market participants said that an anti-dumping policy might only deliver a limited impact. Some buyers can also switch to purchasing ethylene dichloride (EDC) or vinyl chloride monomer (VCM) and produce PVC locally.
