China launches antidumping probe into EPDM imports

BEIJING—China's Ministry of Commerce (MOFCOM) has started an antidumping investigation into EPDM imports from the U.S., South Korea and European Union.

The investigations, launched June 18, come in response to a May 8 complaint that was filed by Jilin Petrochemical, an affiliate of China National Petroleum Corp. and Shanghai Sinopec Mitsui Elastomers. The two applicants' EPDM production accounted for more than half of China's total in 2017 and 2018, according to a MOFCOM statement.According to the companies' application, the U.S., South Korea and EU's shipments accounted for 79 percent of China's total EPDM imports of 234,000 metric tons last year. The 2018 prices for EPDM imports from those regions dropped by 17 percent, 11 percent and 6 percent, respectively, compared with 2015.

China produced 191,000 tons of EPDM last year, despite having a nameplate production capacity of 370,000 tons, according to the application.

The application also noted that the U.S., which accounted for about 45 percent of the total EPDM exports, had a $3,900 per ton domestic price last year, compared with $1,936 per ton for exports to China.

The margin of dumping for the U.S., South Korea and EU in 2018 are 104.5 percent, 24.5 percent and 31.7 percent, respectively, according to the application in May. The petitioners contend that such dumping has resulted in their own significant deficit and low utilization rates since 2015.

The investigation is expected to take about a year, but can be extended until mid-December 2020 if special circumstances require it.

The dumping period is set as the calendar year of 2018. The injury period dates range from Jan. 1, 2015, to Dec. 31, 2018.