Citric Acid Trade War between China and the World

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Publish time: 27th January, 2011      Source: CCM
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      In the past ten years, China's citric acid industry has faced several anti-dumping investigations, from Thailand and Ukraine in 2003, South Africa, EU in 2007, to US's anti-dumping and countervailing investigation in 2008, until Brazil's new application for anti-dumping investigation at the end of 2010. Because of the status of China's citric acid industry (so far it has become the largest production and export country globally), it's quite normal to see such a phenomenon that lots of trade frictions happened among China and other countries, especially the main citric acid consumption area, such as the US and the EU.

    

       

    

      On October 22, 2010, the American citric acid industry asked that the U.S. Department of Commerce investigated possible "circumvention" of antidumping and countervailing duty orders on citric acid and certain citrate salts from China. It seems that this war becomes fiercer and fiercer recently.

    

       

    

      To face this war, some domestic citric acid giants held an optimistic view. They believed that even though failed in some investigation, they could make up this duty through increasing price or some other ways to transfer the loss on local customers. Or they could handle this by other strategic ways to avoid loss. However, for other smaller players in China, they will become the sacrificial lambs by destiny in the end, and have to give up the high-levied markets.

    

       

    

      According to CCM's citric acid webinar speaker Likely Lee's view, the EU and the US antidumping issues did not bring much negative effect on the export volume of Chinese citric acid. The export volume has maintained uptrend since 2006, except the year of 2008 when global financial crisis and Chinese melamine scandal happened, leading to the export volume decline. By contract, the export volume to the EU and the US did reduce significantly in recent 3 years, comparing with 2007. Many citric acid manufacturers in China no longer exported citric acid to US since 2008.

    

       

    

      How does Chinese citric acid industry cope with the trade wars? How does it realize the export volume increase? CCM concluded three possible reasons based on its relevant research, entrecote trade, actively respond to the anti-dumping investigation, and expand new market (countries without anti-dumping and anti-subsidy, or domestic market). And CCM will expand the three reasons with analysis data and practically typical cases to support its viewpoint in the webinar.

    

       

    

      About CCM's Citric Acid Webinar

    

       

    

      CCM kept close watch on the development of Chinese citric acid industry in its publication Corn Products China News. To make you better understand some relevant background and share its opinions and research results about this war, CCM is going to host a webinar around China citric acid industry.

    

       

    

      This webinar will be held at 09:15 a.m., Central Standard Time (Chicago, GMT-06:00) on Thursday, Feb.24, 2011. Anyone who is interested in it can register on:

    

      https://cnchemical.webex.com/cnchemical/j.php?ED=141560192&RG=1&UID=955459297&RT=MiM3

    

       

    

      Please see the latest outline of this webinar,

    
          
  •         Review the anti-dumping investigations on Chinese citric acid from Brazil, EU and US
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  •         Effect of these anti-dumping issues on China's citric acid industry (export performance during 2007~2010)
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  •         Three possible methods used by China citric acid industry to cope the "double-reverse" investigation
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  •         Performance forecast of China's citric acid industry in 2011
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