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Chinese CPL imports under probe, Taiwan to benefit
Nov '10
Chinese Ministry of Commerce intends to initiate anti-dumping investigation against caprolactam (CPL) imported from the EU and the United States.

Currently, China levies seven percent tariff on CPL and 6.5 percent customs duties on nylon products.

As the average anti-dumping duty on nylon products from Taiwan is 4.3 percent, there is still relatively low-cost advantage for CPL to be shipped to Taiwan and then re-exported to mainland China after being converted in to nylon products, as long as China's preliminary anti-dumping tax rate on CPL from European and American firms is less than 3.5 percent.

But then, European and American firms will sell CPL directly to Asia and Taiwan's industry is expected to be the biggest beneficiary in the Chinese market.

Demand for nylon processed filament is vibrant, leading to a flood of orders from China, due to which Taiwan's nylon industry is expected to observe the highest operating rates in the future.

Fibre2fashion News Desk

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