South Korea embarks on antidumping investigation into 2 Japanese PO makers

21-Jan-10

South Korea has embarked upon a formal antidumping investigation into two Japanese makers of propylene oxide in response to complaints filed by SKC Ltd., the country’s sole manufacturer of PO. SKC complained to the Korea Trade Commission (KTC) that chemical imports from Japan’s Nihon Oxirane Co. and Toyota Tsusho Corp. had been sold at unfairly low prices, hurting its market share and profits. Domestic demand for PO uptil Q3-09 was at 425.4 bln won (US$373.8 mln). Of this about 74% worth US$314.1 bln is produced locally, and the balance is imported. Imports from Japan accounted for 13.6% of the overall market. "We have determined there is sufficient cause and evidence behind complaints raised by a local manufacturer," the commission under the Ministry of Knowledge Economy said in a press release. As per commission rule, antidumping probes, which can last for a maximum of 10 months, include on-site inspections. The commission will make a ruling after the probe is completed.