China Announces Dumping Investigation on Adipic Acid      

The Ministry of Commerce of China announces it launches a dumping investigation on adipic acid (AA, HS code: 29171200) originated from the United States of America, the European Union and Korea, effective November 10th, 2008.
    China imported 48.8 thousand tons of AA and its salts, esters from the USA and 70.6 thousand tons from the European Union and 72.3 thousand tons from Korea in 2007, accounting for 17.5%, 25.4% and 26.1% of the total respectively. The imported price of products under the HS code of 29171200 from the three sources in 2007 was approximately US$1 903 per ton, US$1 918 per ton and US$1 893 per ton respectively by a rough calculation.
    AA is applied in the manufacture of nylon 66, engineering plastics, polyurethane (PU) foam, synthetic rubber, and also used as food additive as well as raw materials for medicines, pesticides and spices.
    CNPC Liaoyang Petrochemical Co., Ltd. is a leading AA producer in China, with a capacity of 140 thousand t/a. Followed Shenma Group Co., Ltd. makes AA for its nylon 6,6 production. Taiyuan Chemical Industry Co. Ltd. plans to increase its AA capacity to 50 thousand tons per year. CNPC Dushanzi Tianli High & New Tech Co., Ltd. is constructing a 75 thousand t/a AA facility, which is scheduled for startup by the end of 2008. There are additional two AA makers in China - Shandong Bohui Chemical Industry Group Co., Ltd. and Shandong Hongye Chemical Industry Group Co., Ltd.
    The downstream demand for AA in China has increased rapidly in recent years, with an annual growth of 19.8% during 2001 to 2007. AA price in Chinese market was roughly RMB14 000 per ton this July.