SunSirs: Acetone Anti-dumping is about to Expire, and Domestic Competition may Intensify

According to the Ministry of Commerce's Announcement No. 13 of 2020, the anti-dumping measures on acetone did not end on June 8, 2020, but continued to be implemented from June 8, 2020 for a period of 5 years. Therefore, the anti-dumping measures on acetone are still in effect.

If the anti-dumping measures end on June 8, there may be the following consequences:

1. A significant increase in import volume: imported acetone originating from Japan, Singapore, South Korea and Taiwan, China may enter the Chinese market in large quantities. Manufacturers in these regions are highly dependent on the Chinese mainland market and have large production capacity.

2. Intensified price competition: imported acetone may enter the Chinese market at a low price, which will have an impact on the price system of the Chinese mainland acetone industry and cause a drop in the prices of similar domestic products. The dumped imports of acetone will cause further damage to the Chinese mainland acetone industry in terms of declining market share and shrinking profits.

If the anti-dumping measures continue to be implemented, the above consequences will not occur. However, whether the anti-dumping measures will continue to be implemented in the end will be decided based on the results of the review investigation by the Ministry of Commerce before the expiration.

As the weather gets hotter in the second quarter, the demand will gradually enter the off-season. In addition, the Saudi unit is under maintenance, and the domestic Zhenhai Refining and Chemical phenol ketone unit is planned to be put into production, and the domestic supply will increase. Therefore, the import volume of acetone will decrease from June to August. It is expected that the average monthly import volume of acetone in the second quarter will fluctuate around 35,000 tons. In the second half of the year, if the anti-dumping measures are terminated, the import volume of acetone will increase, especially the dumping of near-sea sources to China, which will inevitably cause a price impact and cause the market center of gravity to fluctuate downward.

If the anti-dumping measures continue to be implemented, the above consequences will not occur. However, whether the anti-dumping measures will continue to be implemented in the end will be decided based on the results of the review investigation by the Ministry of Commerce before the expiration.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.