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Anti-dumping measures on Chinese polyester fabrics confirms worst of industry fears

Sep '05
Anti-dumping duties are likely to be imposed on certain finished polyester filament fabrics from China that are likely to last for five years, the EU's official journal informs.

Duties ranging 14.1 percent to 56.2 percent will come in to force, as the journal listed anti-dumping duties for 45 Chinese textile enterprises, most attracting between 14.1 percent to 37.1 percent duties.

For past nine months the EU had been conducting anti-dumping investigations, and finally concluded that some finished polyester filament fabrics from China have adversely affected the EU market.

Media reports say that European products output and market share dropped by 20 percent during April 2003 and March, this year.

Europe's polyester filament fabrics demand remained unchanged at about 732 million running metres during the period of investigations.

All this while China's EU exports shot up to 288 million running metres, up from 135 million running metres in 2000.

The industry has reacted sharply to this move and fears 56.2 percent anti-dumping duties will shut exports from certain large Chinese enterprises to Europe.

While revaluation of Chinese currency Renminbi has already shrunk operating margins, rising energy, raw materials and labor cost will stifle the industry further, say industry insiders.

Earlier, in March, EU had taken preliminary decision to impose 20 percent anti-dumping duties on 25 enterprises that were granted market economy status, and duties ranging from 26.7 percent to 85.3 percent were placed on 31 other firms.

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