Experts from China Chlor-Alkali Industry Association say that the cancellation of protection will affect the new PVC production capacity
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In 2003, China began to impose anti-dumping tariffs on PVC imported from countries and regions such as the United States, South Korea, and Japan. The period for the implementation of anti-dumping measures was five years from September 29 of that year. The final review review conducted by the Ministry of Commerce from September 29th is to study whether to continue anti-dumping measures after the end of the five-year period.
Zhang Wenlei, deputy secretary-general of the China Chlor-Alkali Industry Association, said that the Association took the lead in applying for anti-dumping investigations, that is, it wanted to extend anti-dumping measures for five years. "The association attaches great importance to it. It started preparations a year and a half ago. There are 8 application companies, 7 support companies, and 15 companies account for more than half of domestic PVC production capacity."
Donghua Gao Youzhi, director of Nanghua Co., Ltd., said that the domestic PVC prices have fallen very seriously and the entire industry is at the bottom, while the cost of foreign countries is higher than that of domestic ones. Exports to China are not profitable. Xu Peiwen, director of the chlor-alkali chemical industry, said that the current domestic imports are mainly PVC special materials, some products can not be produced domestically, and general materials are imported very little, many foreign companies have stopped production and merger.
It is understood that due to the high oil prices, the production costs of foreign PVC companies that mainly use petroleum as raw materials have already surpassed domestic ones. If exported to China, there is no cost advantage. "The price of imported PVC is now about 400 yuan more than domestic one ton." Bohai Securities analyst Liu Wei said.
However, Zhang Wenlei believes that we cannot relax our vigilance. “The PVC industry is closely linked with the real estate industry. Due to the slump in real estate, the US, Japan, and South Korea now have a surplus capacity of 4 million tons, and the companies in Japan and South Korea are export-oriented. Production is mainly for export. They are as much as possible. Expand sales."
"Now that the price of oil has fallen, the cost of foreign companies has also been reduced. In addition, chlorine and alkali are produced together. With the profit of caustic soda, the price of PVC can be very low and it can make the whole profit." Zhang Wenlei believes that if it does not implement Anti-dumping measures, foreign companies will soon rush in.
"China has become the world's largest producer of PVC, and it is inseparable from the protection of five years. If we cancel the protection now, it will be a blow to the newly established domestic production capacity," he said.
It is understood that the investigation conducted by the Ministry of Commerce will be conducted for one year. During this period, the previous anti-dumping tariff policy will be continued. The Ministry of Commerce will rule on September 29 next year whether to take anti-dumping measures, if the ruling does not constitute anti-dumping. Under the conditions, the anti-dumping duties imposed will be returned to the relevant enterprises. On March 29, 2002, the Ministry of Foreign Trade and Economic Cooperation of the State decided to accept complaints from five companies, including chlor-alkali chemicals, to conduct anti-dumping investigations on imported PVC products. Since 1999, under the influence of low prices of imported products, the prices of domestic PVC products have fallen year after year, especially in 2001, the average price of such products has dropped by 25%-30%.