Lion Elastomers files trade action against ESBR imports

WASHINGTON—Lion Elastomers L.L.C. has filed an antidumping petition against the imports of emulsion styrene butadiene rubber into the U.S from the Czech Republic, Italy and Russia.

The petition, filed with the U.S. Department of Commerce and the International Trade Commission on Nov. 12, alleged that there is a "clear pattern of unfair pricing" of ESBR from these countries.

Lion claimed this has caused material injury to the domestic industry in the form of "lost sales, decreased production volume and capacity utilization, lower profit margins, and contractions in labor force retention."

The synthetic rubber producer said it was supported in the action by the United Steelworkers Local 13-228-03 and the International Union of Operating Engineers ("IUOE") Local 564.

The petition covers grades of ESBR included in the IISRP 1500 and 1700 series of synthetic rubbers sold in all solid forms, including, but not limited to, bales, granules, crumbs, pellets, powders, plates, sheets and strip. Excluded from the list are ESBR grades that are manufactured by blending ESBR with other polymers, high styrene resin masterbatch, carbon black masterbatch (1600 and 1800 grades) and latex.

ESBR is used primarily in tire applications as well as in conveyor belts, shoe soles, hose, roller coverings and flooring.

According to the petition, Lion is claiming a dumping margin of 35.87 percent for ESBR imported from the Czech Republic, 44.51 percent from Italy and 67.87 percent from Russia.

There was nearly 7 million pounds of ESBR imported from Italy in 2018, with the number jumping to more than 16 million pounds in 2019 before dropping during pandemic-impacted 2020 to 13.2 million pounds, the petition data showed. For Russia, the imported totals were 7.12 million pounds in 2018, 8.6 million in 2019 and surging to 38.8 million last year. Totals for the Czech Republic was 23 million pounds in 2018 and 27.4 million in 2019, before dropping to 16.3 million in 2020.

The trade action lists Synthos Kralupy A.S. as an importer of ESBR to the U.S. from the Czech Republic; Versalis S.p.A. from Italy; and Omsky Kautchuk, Sibur Holding, JSC Synthez-Kauchuk and Tatneft from Russia.

"Lion Elastomers L.L.C. has filed this petition seeking enforcement of U.S. trade laws designed to create a level playing field for U.S. producers, and to maintain manufacturing jobs in the United States," Lion said in a news release. "The petition requests the imposition of remedial antidumping duties equal only to the margin of unfair pricing by foreign producers in the U.S. market."

The ITC's preliminary investigation sets questionnaires to be due Nov. 29; requests to appear at a hearing by Dec. 1; a hearing held Dec. 3; briefs due Dec. 8; and a vote to follow on Dec. 27.

The ITC and DOC would then make preliminary and final determinations in 2022.

Lion has been a maker of SR in the U.S. for more than 60 years, employing more than 530 at plants in Geismar, La., and Porches and Orange, Texas.

The firm previously filed a trade action against ESBR imports Mexico, Brazil, Poland and South Korea, that resulted in duties being levied in 2017. The DOC recently said it was conducting a review of the duties levied against Industrias Negromex S.A. de C.V., and will look at data for the 12 months ended Aug. 31, 2021.

European Rubber Journal contributed to this report.