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Taiwanese to benefit from Chinese antidumping duty on CPL
Jan '11
Chinese Ministry of Commerce announced on January 24 the preliminary ruling of antidumping investigation into Caprolactam (CPL) imports originating from the EU and US and imposed dumping margin between 4.3-25.5 percent.

The Taiwanese nylon industry is expected to benefit from the preliminary ruling of China's anti-dumping over CPL. Insiders from the industry say that after the passage of anti-dumping cases, costs of China's nylon industry will be boosted and competitiveness Taiwan's industry will be greatly improved, due to lower tax rate.

Chinese importers will now have to pay antidumping duty ranging between from the lowest 4.3 percent to a maximum of 25.5 percent, so costs of China's nylon industry will be significantly boosted in the future.

Currently China imposes 7 percent tariff on Taiwanese produced CPL and 6.5 percent tariff on nylon particles and Taiwanese nylon particles are imposed 4.3 percent anti-dumping duty on average. China is expected to shift many orders from the EU and the United States to Taiwan after Chinese New Year.

Recently spot price of raw materials CPL has exceeded US $3,280 per metric ton, a new high and market players expect that offers of nylon particles will have opportunity to test US $3500-3600, about 10 percent higher compared with the end of last year.

It is reported that market players have increased their February price by US $2 per kg or 2 percent on average so as to pass on rising prices of raw materials.

Fibre2fashion News Desk

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