Certain Polyethylene Terephthalate Resin
Notice of Final Decisions
Ottawa, February 14, 2018
On February 14, 2018, the Canada Border Services Agency (CBSA), pursuant to paragraph 41(1)(a) of the Special Import Measures Act (SIMA), terminated the subsidy investigation in respect of certain polyethylene terephthalate resin (PET resin) exported to Canada from the Sultanate of Oman (Oman) by OCTAL SAOC FZC (Octal), and exported to Canada from the Islamic Republic of Pakistan (Pakistan) by Novatex Limited (Novatex) and originating in or exported from Pakistan by all other exporters, as the amounts of subsidy were insignificant.
On the same day, the CBSA, pursuant to paragraph 41(1)(b) of SIMA, made a final determination of dumping in respect of certain PET resin originating in or exported from the People’s Republic of China (China), the Republic of India (India), Oman and Pakistan, and a final determination of subsidizing in respect of certain PET resin originating in or exported from China and India.
As all exporters of goods originating in or exported from Oman and Pakistan have an insignificant amount of subsidy, the termination of the subsidy investigation in respect of subject goods from these exporters will effectively end the CBSA’s subsidy proceedings in respect of goods from Oman and Pakistan.
The subject goods are usually classified under the following tariff classification numbers:
Prior to January 1, 2017, the subject goods were usually classified under the following tariff classification numbers:
Since January 1, 2017, the subject goods are usually classified under the following tariff classification numbers:
Note that the tariff classification numbers are for convenience of reference only. Refer to the product definition, as found in Appendix 1, for authoritative details regarding the subject goods.
The Canadian International Trade Tribunal (CITT) is continuing its inquiry into the question of injury to the domestic industry and will make an order or finding by March 16, 2018.
Provisional duties will continue to be applied on imports of dumped and subsidized subject goods originating or exported from China, India, Oman and Pakistan until the CITT concludes its inquiry and issues its finding. However, provisional countervailing duties on goods exported from Oman by Octal, and exported from Pakistan by Novatex and originating in or exported from Pakistan by all other exporters, will cease, and all provisional countervailing duties paid or security posted on these goods, will be returned.
Additional information about these dumping and subsidizing investigations is contained in a Statement of Reasons, which will be available within 15 days on the CBSA’s website at: http://www.cbsa-asfc.gc.ca/sima-lmsi/menu-eng.html.
For additional information regarding the application of provisional duties on subject goods imported into Canada, please refer to the following link which contains contact information of CBSA Enforcement officers: http://www.cbsa-asfc.gc.ca/sima-lmsi/contact-eng.html.
Officers’ names and contact information:
Richard Pragnell: 613-954-0032
Valerie Ngai: 613-954-7410
Margins of Dumping and Amounts of Subsidy by Exporter
|Country of origin or export
||Margins of dumping expressed as a percentage of export price
||Amounts of subsidy expressed as a percentage of export price
||Amounts of subsidy per metric tonne
|Reliance Industries Limited
||2,288 Indian Rupee
|All Other Exporters
||22,877 Indian Rupee
|OCTAL SAOC FZC
||0.37 Omani Rial
||160 Pakistani Rupee
|All other exporters
||160 Pakistani Rupee
*Pursuant to section 2(1) of the Special Import Measures Act (SIMA), an amount of subsidy of less than 1% of the export price of the goods is insignificant for a developed country and of less than 2% of the export price of the goods for a developing country.
NOTE: The margins of dumping reported in the table above are the margins determined by the Canada Border Services Agency (CBSA) for purposes of the final determination of dumping. These margins do not reflect the anti-dumping duty to be levied on future importations of dumped goods. In the event of an injury finding by the Canadian International Trade Tribunal, normal values have been provided to the exporters which provided sufficient information for future shipments to Canada and these normal values would come into effect the day after the injury finding. Information regarding normal values of the subject goods should be obtained from the exporter. Imports of subject goods from exporters/producers that did not provide sufficient information to the CBSA during the dumping investigation and who are not listed in the table above will be subject to the All Exporters/All Other Exporters anti-dumping duty rate pursuant to a ministerial specification.
As reported in the table above, the amounts of subsidy (as a percentage of export price) are the amounts determined by the CBSA for purposes of the final determination of subsidizing. These amounts do not reflect the countervailing duty to be levied on future importations of subsidized goods originating in or exported from China and India, which will be based on the specific amounts of subsidy, per metric tonne, converted into Canadian dollars.
Normally, normal values will not be applied retroactively. However, this measure may be applied retroactively in cases where the parties have not advised the CBSA in a timely manner of substantial changes that affect values for SIMA purposes. Therefore, where substantial changes occur in prices, market conditions, costs associated with production and sales of the goods, the onus is on the concerned parties to advise the CBSA.
Please consult the SIMA Self-Assessment Guide for more detailed information explaining how to determine the amount of SIMA duties owing.
For the purpose of the dumping and subsidizing investigations, the subject goods are defined as:
Polyethylene terephthalate (“PET”) resin having an intrinsic viscosity of at least 0.70 deciliters per gram but not more than 0.88 deciliters per gram, including PET resin that contains various additives introduced in the manufacturing process, as well as blends of virgin PET resin and recycled PET containing 50 percent or more virgin PET resin content by weight, originating in or exported from the People’s Republic of China, the Republic of India, the Sultanate of Oman and the Islamic Republic of Pakistan.
Posted on 02/20/2018
Welcoming 2018 with a look back at highlights from 2017
Posted at 04:10 January 02, 2018 from ChemOrbis Connections Markets
As global players are returning to their desks to start 2018, here is the summary of what made the headlines in petrochemical markets during 2017. Some of the most important developments of the year were the rebound of crude oil futures, some considerable capacity additions in the ethylene and PE markets, economical and natural developments as well as major company updates at several global producers.
Oil prices traded in the range of $45-55/bbl on NYMEX in the first nine months of 2017 before they started to firm up in October due to supply concerns. Crude oil futures mostly maintained a bullish run in the last quarter of the year while hitting their highest levels since June 2015 in the last week of December.
Meanwhile, Brent futures were mostly on a firming trend in the June-December period of the year, with prices recently hitting their highest levels since May 2015.
On November 30, OPEC and non-OPEC members unanimously agreed to prolong oil production cuts until the end of 2018 in attempt to reduce supply glut.
Naphtha prices both in Asia and Europe followed a softening trend in the first quarter of 2017 while they steadily increased in the second half. According to ChemOrbis Price Wizard, both regions’ naphtha markets have recently hit their highest levels since the end of 2014.
Meanwhile, spot ethylene prices in Asia have been following a bullish trend since July amidst availability issues and have been trading above China’s import LDPE and LLDPE markets for more than four months, according to ChemOrbis Price Index.
New ethylene/PE capacities
Many petrochemical producers in several countries including China, India, Iran and the US either expanded their production capacities or launched new plants for ethylene and/or PE in 2017.
In the US, Chevron Phillips began the startup process of its new PE units at Old Ocean, Texas in September. Each PE unit is able to produce around 500,000 tons/year of PE. The company’s new 1.5 million tons/year cracker also begun the commissioning activities in December.
DowDuPont Materials Science started up its new integrated ethylene plant and its upgraded PE unit named ELITE in Freeport, Texas in September. The company’s ethylene plant has a production capacity of 1.5 million tons/year while ELITE is expected to produce 400,000 tons/year of PE.
ExxonMobil launched the first of its two new PE lines, located in Mont Belvieu, Texas, in October. The company’s new PE units are able to produce 650,000/ton of PE each.
India’s Reliance Industries Limited also started up its new 1 million tons/year PE plant, located in Jamnagar, India at the end of September. Players particularly in China reported competitive PE offers for Indian origin in the last quarter while they also showed up sporadically in Turkey and Southeast Asia.
Although the new capacities have already caused some oversupply concerns across the globe, plans for new projects do not seem to lose momentum for the years between 2020 and 2025 across the board. Iran, in particular, speeded up its plans to develop new petchem units in 2017 in partnership with several foreign funds.
China-Iran bank issues cause HDPE prices to spike
In May, many traders in China reported that they were facing difficulties in securing petrochemical goods from Iran since China’s banks started to impose some restrictions on opening letters of credit for transactions with Iranian parties.
Iran, as the main HDPE supplier of China, lost a considerable market share given these payment issues. According to data from ChemOrbis Import Statistics, China’s total HDPE imports from Iran decreased by around 7.2% year on year in the January-November period. Meanwhile, Saudi Arabia recuperated Iran’s loss as it raised its market share considerably by around 37% in the same timeframe.
As a result of reduced supplies from Iran, China’s import HDPE market mostly followed a bullish trend in the second half of 2017, with prices hitting a more-than-2-year high in late November.
Members of Gulf Cooperation Council (GCC) including Saudi Arabia, Bahrain, and the United Arab Emirates cut their diplomatic relations with Qatar in early June, which generated economic and supply concerns throughout June. However, these concerns happened to be short-lived as Muntajat continued to meet their customers’ requirements through alternative logistics arrangements which included re-routing their shipments through other ports.
India’s implementation of GST
In most of the second half of 2017, India’s polymer demand was negatively affected by the government’s implementation of GST (Goods and Services Tax) which was put into force as of July 1 as an indirect tax on manufacture, sale and consumption of goods as well as services.
On a global scale, the new tax in India affected PVC the most among other polymers given the country’s position as the world’s largest importer of PVC. Demand from India was persistently slow for months as the market sentiment failed to improve even after the monsoon season due to uncertainties over the GST implementation.
In November, the Indian government decided to revise the tax rates down and boost consumption to increase consumer goods and the retail sector, the media reported.
A series of devastating hurricanes, including Harvey and Irma, hit the US in September, causing more than $202 billion in damage, according to estimates by Bloomberg. Most petrochemical producers based in the US Gulf Coast were forced to shut their plants given the major storms and a large part of production was suspended in the region. The impact of Harvey-driven shutdowns was felt considerably across the globe as supplies from the US reduced significantly at that time. Spot ethylene prices in the US, for instance, hit a seven-month high in mid-September amidst reduced supply levels while regional polymer producers had to cut their export allocations and lift their offers.
Record-high imports in China and Turkey
ChemOrbis Import Statistics reveal that China’s and Turkey’s imports of polymers made in January-November already surpassed the previous years while the full data for 2017 is likely to hit new record highs with more than 18 million tons in China and 5 million tons in Turkey.
PET prices amid safeguard measures
PET prices climbed to more-than-two-year high both in Asia and Europe during 2017 although increasing measures on PET imports across the globe changed the trade routes of PET. Indonesia, Japan, Canada and the US were among the countries that applied new duties or started antidumping investigations on several Asian origins, particularly on China, last year. However, the European Union terminated the 13-year-long antidumping measures on China’s PET in early 2017, which triggered questions of whether Europe will be the new destination for this origin particularly in the absence of M&G, which filed for bankruptcy, and the problematic issues with JBF.
Swiss Clariant AG and the US based Huntsman Corp have mutually abandoned their merger plans while Brazil’s Braskem denied the takeover talks with LyondellBasell in November. Dow Chemical Co and DuPont finalized their planned merger on September 1 to form DowDuPont.
Petronas and Saudi Aramco re-united in RAPID project, which includes a refinery, a cracker and a downstream chemical complex with a production capacity of 7.7 million tons/year to be commenced in 2019. Aramco also said that their plans for IPO remained on course for 2018 despite the widespread speculations that emerged in the latter part of the year.
Saudi Aramco, meanwhile, acquired the full shares of the US’ largest oil refinery, Port Arthur in July while they company signed a memorandum of understanding with SABIC in November to develop a fully integrated crude oil to chemicals (COTC) complex by 2025, which is marked as the first time the two oil giants of Saudi Arabia had entered into a strategic partnership.
Posted on 01/08/2018
U.S. Department of Commerce Initiates Antidumping Duty Investigations of Imports of Polyethylene Terephthalate Resin from Brazil, Indonesia, the Republic of Korea, Pakistan, and Taiwan
Posted at 7:07 PM October 17, 2017 from US Department of Commerce
FOR IMMEDIATE RELEASE
Tuesday, October 17, 2017
Office of Public Affairs
Today, U.S. Secretary of Commerce Wilbur Ross announced the initiation of new antidumping duty (AD) investigations to determine whether imports of Polyethylene Terephthalate (PET) Resin from Brazil, Indonesia, the Republic of Korea (Korea), Pakistan, and Taiwan are being dumped in the United States.
“The Department of Commerce will ensure a full and fair assessment of the facts, and, if the rules are being broken, will act swiftly to halt any unfair trade practices,” said Secretary Ross. “The U.S. market is the most open in the world, but we must ensure U.S. businesses and workers are treated fairly.”
These AD investigations were initiated based on petitions filed by DAK Americas, LLC (Charlotte, N.C.), Indorama Ventures USA, Inc. (Decatur, Ala.), M&G Polymers USA, LLC (Houston, Texas), and Nan Ya Plastics Corporation, America (Lake City, S.C.) on September 26. Indorama Ventures USA, Inc. is not a petitioner with respect to the Indonesia investigation.
The estimated dumping margins alleged by the petitioners range from 18.76 to 115.87 percent, 8.49 to 53.50 percent, 55.74 to 101.41 percent, 25.03 to 43.40 percent, and 14.67 to 45.00 percent for Brazil, Indonesia, Korea, Pakistan, and Taiwan, respectively.
The Commerce Department will determine whether imports of PET resin from Brazil, Indonesia, Korea, Pakistan, and Taiwan are being dumped in the U.S. market at less than fair value. If the Commerce Department determines that these products are being dumped into the U.S. market, and if the U.S. International Trade Commission (ITC) determines that dumped U.S. imports of PET resin from Brazil, Indonesia, Korea, Pakistan, and/or Taiwan are causing injury to the U.S. industry, the Commerce Department will impose duties on those imports in the amount of dumping found to exist.
In 2016, imports of PET resin from Brazil, Indonesia, Korea, Pakistan, and Taiwan were valued at an estimated $51.7 million, $35.7 million, $24 million, $34.1 million, and $109.8 million, respectively.
Enforcement of U.S. trade law is a prime focus of the Trump administration. From January 20, 2017, through October 17, 2017, the Commerce Department has initiated 70 AD and countervailing duty (CVD) investigations – a 46 percent increase over the previous year. Commerce currently maintains 412 AD and CVD orders which provide relief to American companies and workers impacted by unfair trade.
Click HERE for a fact sheet on these initiations.
During the Commerce Department’s investigations into whether PET resin is being dumped into the U.S. market, the ITC will conduct its own investigations into whether the U.S. industry and its workforce are being harmed by such imports. The ITC will make its preliminary determinations on or before November 13. If the ITC preliminarily determines that there is injury or threat of injury, then the Commerce Department investigations will continue, with preliminary AD determinations scheduled for March 5, 2018, unless these deadlines are extended.
If the Commerce Department preliminarily determines that dumping is occurring, then it will instruct U.S. Customs and Border Protection to start collecting cash deposits from all U.S. companies importing the subject PET resin from Brazil, Indonesia, Korea, Pakistan, and Taiwan.
Final determinations by the Commerce Department in these cases are scheduled for May 21, 2018, but these deadlines may be extended. If the Commerce Department finds that products are not being dumped, or if the ITC finds in its final determinations there is no harm to the U.S. industry, then the investigations will be terminated and no duties will be applied.
Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to “antidumping” duties.
Posted on 10/20/2017