CCM: USITC makes ruling in favour of HFC components from China in anti-dumping case 08-29-2016

On 5 Aug., 2016, the United States International Trade Commission (USITC) notified the United States Department of Commerce (USDC) of their final ruling in the Chinese hydrofluorocarbons (HFCs, incl. blends and components) anti-dumping suit.



                                                                                       Source: Baidu


Specifically, the USITC affirmed that material injuries/threats had been caused by Chinese HFC blends to local business, but found that injuries/threats from corresponding HFC components had not been caused.


This signifies that the US will levy anti-dumping duties on Chinese HFC blends, but not on individual HFC components.


Meanwhile, the USITC confirmed that the products in question were not exported in large quantities by Chinese exporters during the investigation, and that no injuries were made by such imports on local business. This is a reversal of the former ruling by the USDC that anti-dumping duties should be imposed on Chinese HFCs (incl. blends and components) imported prior to 1 Feb., 2016 (the date of the USDC’s affirmative preliminary determination).

 

This is good news for many Chinese refrigerant manufacturers, since they mainly produce HFC components in the domestic market.


“The final determination is of great significance to us, especially in regards to the market environment and market expectation for the products involved in the case, say difluoromethane (HFC-32), pentafluoroethane (HFC-125) and trifluoroethane (HFC-143a),” announced leading player Zhejiang Juhua Co., Ltd., “It will have no big impact on our business operation and financial performance.”


Certainly many manufacturers are engaged in the export of HFC blends (the US is a key destination). In the short run, their businesses will be threatened considerably. However, when the US reduces its imports of HFC blends, it will accordingly increase its own HFC blend production to achieve self-sufficiency, which is hoped to push up the demand for HFC components and furthermore be beneficial to China’s exports of such products.


It is notable that 1,1,1,2-tetrafluoroethane (HFC-134a) has been excluded from this anti-dumping suit. This is mainly because it is involved in another separate anti-dumping investigation launched by the US: earlier this year, on 24 March, the USITC announced an investigation into HFC-134a imported from China, and in April, provisionally voted in the affirmative with respect to its injuries to local business; now the USDC is conducting its own investigation, and will make a primary determination in mid-Aug.

 

Review of the HFC blends and components anti-dumping case launched by the US against China

- Applicants:

The members of the American HFC Coalition, including Amtrol, Inc., Arkema, Inc., the Chemours Company FC LLC, Honeywell International Inc., Hudson Technologies, Mexichem Fluor Inc. and Worthington Industries, Inc.


- Timetable:

  • 22 July, 2015 – The USDC began processing the case and launched an investigation
  • 7 Aug., 2015 – The USITC made a provisional affirmative determination on the injuries caused to local business
  • 22 Jan., 2016 – The USDC made an affirmative primary ruling
  • 22 June, 2016 – The USDC made an affirmative final ruling
  • 22 July, 2016 – The USITC made a final determination of the “injury margin”
  • 5 Aug., 2016 – The USITC notified the USDC in regard to their final ruling

 

HFCs involved in the anti-dumping case launched by the US against China

No.

Category

Product

Components

1

Blends

R404A

HFC-125, HFC-143a and HFC-134a

2

R407A

HFC-32, HFC-125 and HFC-134a

3

R407C

HFC-32, HFC-125 and HFC-134a

4

R410a

HFC-32 and HFC-125

5

R507A

HFC-125 and HFC-143a

6

Components

HFC-32

/

7

HFC-125

8

HFC-143a

9

HFC-134a

Note: 1. HFC-125 stands for pentafluoroethane;
         HFC-143a stands for trifluoroethane;
         HFC-134a stands for 1,1,1,2-tetrafluoroethane;
         HFC-32 stands for difluoromethane.
         2. Component 1,1,1,2-tetrafluoroethane (HFC-134a) is excluded from this investigation.
Source: The United States International Trade Commission & CCM

 

This article comes from China Fluoride Materials Monthly Report 1608, CCM

 



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