Malaysia and Egypt open anti-dumping investigations on PET

Players report that the Malaysian and Egyptian governments will begin anti-dumping investigations into various PET origins in the near future, while Turkey will hold a review of investigation of its safeguard measures on PET imports, which are currently set to expire on July 11, as per ChemOrbis. On June 17, Malaysia’s International Trade and Industry Ministry (MITI) reportedly initiated a preliminary anti-dumping investigation into PET imports from China, Indonesia and South Korea, according to media sources. The investigation was launched after a domestic producer petitioned the government, claiming that PET imports from those countries were available at prices below the prices prevailing in their domestic markets. As part of the investigation, MITI was reportedly ready to provide questionnaires upon request to interested parties including foreign producers, importers, exporters and associations until the end of June. The Ministry is expected to announce a preliminary decision 120 days after the start of the investigation. Meanwhile, Egypt’s Minister of Industry and Foreign Trade Mounir Fakhry Abd El Nour has reportedly agreed to open an investigation into PET imports from China, Oman, India, Malaysia and Pakistan. According to a press release, the Head of the Anti-dumping, Subsidy & Safeguard Department, Ibrahim el Siginy, confirmed that they received complaints supported by documents from the national industry purporting to show that PET imports from India, China, Malaysia, Pakistan, Oman, Thailand and the UAE enter the country at lower prices and harm industry within Egypt. However, Thailand and the UAE were exempted from the investigations as both countries have a market share of less than 4% in the Egyptian PET market. In addition, the Turkish government will implement a review investigation on the country’s existing safeguard measures for PET imports, which are currently set to expire on July 11, according to a notification published in the Official Gazette on July 8. Domestic producers Artenius Turkpet, Kokan PET and Meltem Kimya reportedly requested that the Ministry of Economy conduct a review investigation of the safeguard measures in order to protect the domestic industry. Turkey currently assesses an additional financial obligation of 7% on imported PET. Turkey’s total PET imports have declined over the past year owing to the start up of some new domestic capacities. According to Turkish Customs, PET imports through the first five months of 2014 stand at 46,250 tons, down 41.8% from 2013. Pakistan was the largest PET exporter to Turkey through the first five months of year with 20,539 tons of exports. These anti-dumping investigations have provoked some concern among PET producers in Asia. A source at a Chinese producer said, “We were concerned to hear that Egypt was starting an anti-dumping investigation, but we feel that our business will not be badly affected as Egypt is not one of our major export destinations.” A source at a second Chinese producer added, “Demand is not all that encouraging these days and we are concerned that anti-dumping investigations in Egypt and Malaysia will further dampen buying interest from overseas customers.” According to ChemOrbis, elsewhere, a source from a Malaysian producer said that they were surprised that Malayisan PET was included in Egypt’s anti-dumping investigation. A source at another Malaysian producer said, “We believe that Chinese sellers have been dumping into Malaysia recently and were satisfied to see Chinese sellers raise their prices to levels closer to par with other Asian producers last month. We are waiting to see the results of the Ministry’s investigation.”