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Chinese automotive yarn attracts EU antidumping duty
08 Apr '11
2 min read
The European Union has recently imposed 9.8 percent antidumping duty on Chinese automotive yarn for five years to protect the interests of EU industries.
This new duty will be effective from December 3. The EU announced the decision in Brussels a few days back. It imposed such duties on the yarn from South Korea and Taiwan too.
This step will affect major Chinese exporters including Wuxi Taiji Industry Co. badly as they are already under the burden of such duties. Earlier, the EU had imposed provisional duty as high as 9.3 percent effective from June.
The EU has imposed anti dumping duty as sales of the Chinese made yarn have overtaken EU produced yarn in sales. Chinese yarn is sold at lower rates than EU produced yarn in the 27-nation, a practice known as dumping.
Chinese yarn is mainly used by the automotive industry in the EU. In Europe such material is produced by companies including Belgium's Sioen Industries NV. It is used for tire reinforcement and seatbelts in addition to make conveyor belts and nets.
China tripled its share in the EU yarn market in the 12 months till June 2009 compared to the same period in 2005. At present China's share in EU yarn market is 23.6 percent. On the other hand European producers' share in their own market has fallen from 51.1 percent to 39.2 percent during the same period.
Because of this decision, fears raised about bad times for companies like Michelin & Cie. and Continental AG were dismissed by the EU.
This new duty will be effective from December 3. The EU announced the decision in Brussels a few days back. It imposed such duties on the yarn from South Korea and Taiwan too.
This step will affect major Chinese exporters including Wuxi Taiji Industry Co. badly as they are already under the burden of such duties. Earlier, the EU had imposed provisional duty as high as 9.3 percent effective from June.
The EU has imposed anti dumping duty as sales of the Chinese made yarn have overtaken EU produced yarn in sales. Chinese yarn is sold at lower rates than EU produced yarn in the 27-nation, a practice known as dumping.
Chinese yarn is mainly used by the automotive industry in the EU. In Europe such material is produced by companies including Belgium's Sioen Industries NV. It is used for tire reinforcement and seatbelts in addition to make conveyor belts and nets.
China tripled its share in the EU yarn market in the 12 months till June 2009 compared to the same period in 2005. At present China's share in EU yarn market is 23.6 percent. On the other hand European producers' share in their own market has fallen from 51.1 percent to 39.2 percent during the same period.
Because of this decision, fears raised about bad times for companies like Michelin & Cie. and Continental AG were dismissed by the EU.
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