Brief: July 15th, the Brazilian Foreign Trade Commission (GECEX) issued Resolution No. 616 of 2024, imposing provisional anti-dumping duties on Chinese imports. Dumping duties on Phthalic anhydride from China for up to six months at a rate of USD 155.16 – 696.41 per ton. The MERCOSUR tariff number for the product concerned is 2917.35.00. The anti-dumping measures do not apply to Phthalic anhydride in packages of less than 1 kilogram. This resolution is effective as of the date of issuance.
According to the statistics of customs, China’s total exports of Phthalic anhydride in 2023 is about 131,900 tons, of which 17,500 tons were exported to Brazil, accounting for 13.3% of exports went to the second largest export destination; 34,800 tons were exported to India in 2023, accounting for 26.42% of exports went to the first largest export destination.The total amount of exports to India and Brazil in 42,300 tons, accounting for 39.72% of the total exports in 2023, from the data, India and Brazil to receive orders on the domestic Phthalic anhydride exports have a greater impact.
India’s implementation of BIS mandatory certification of China-made Phthalic anhydride in the second half of 2023 blocked exports to the Indian market. Exports declined, as did India’s market share. On February 9, 2024, the Bureau of Foreign Trade of Brazil’s Ministry of Development, Industry, Trade, and Services issued Notice No. 4 of 2024, stating that in response to an application submitted by Brazilian company Petrom Petroquímica Mogidas Cruzes S.A. on October 30, 2023, an anti-dumping investigation would be launched into Phthalic anhydride imported from China. The anti-dumping investigation period runs from July 2022 to June 2023, while the damage investigation period spans from July 2018 to June 2023. On July 5, 2024, the Secretariat of Foreign Trade of the Ministry of Development, Industry, Trade and Services of Brazil issued Public Notice No. 31 of 2024, which issued a positive preliminary anti-dumping ruling in the case. Phthalic anhydride exports to Brazil also fell in 2024 due to anti-dumping policy. Despite the decline in exports to India and Brazil, other countries increased their market share. The UAE became the top destination for Phthalic anhydride exports in the first half of 2024, with 0.64 million tons, accounting for 11.19% of the total. In 2023, exports reached 0.38 million tons, up from 0.04 million tons . Quartz stone is a key driver of this growth which led to the scale of the URP synchronized with the substantial growth and the demand for Phthalic anhydride has grown a lot. Turkey is expected to become a new growth point of domestic Phthalic anhydride export.
According to the statistic of customs , the total export of Phthalic anhydride in the first half of 2024 was about 57,300 tons, down 25.68% year-on-year. Among them, 0.3 million tons were exported to Brazil, accounting for 5.2% of exports, and Brazil fell to the seventh largest export destination. India was the second largest export destination, receiving 0.54 million tons of exports, which accounted for 9.46%. The Brazilian anti-dumping tax has affected Phthalic anhydride exports.
It’s levy of anti-dumping duties since February has been a reaction and domestic Phthalic anhydride exported to Brazil have declined since the first half of this year. The domestic anti-dumping tax on Brazilian imports has been prepared and exports to Brazil will decline again, but the impact on domestic exports will be reduced. Exports to India have decreased since 2023 because of the implementation of BIS mandatory certification for Phthalic anhydride originating in China. However, exports to India have grown compared to last year.
The price difference between internal and external disks is the main reason for the growth of Phthalic anhydride exports. According to oilchem data monitoring, the price difference is increasing, and the arbitrage window has continued to open.Since June, the price of crude oil has risen. This, along with maintenance at many sets of Phthalic anhydride plants in Asia, has led to a price increase. The price difference between internal and external disks is nearly 2,000 yuan/ton, which shows that domestic Phthalic anhydride exports are still growing.
The domestic Phthalic anhydride market has been very different recently. Export-led factories are oversold and shipments are tight, while domestic demand-led factories are facing weaker demand and the market is facing higher resistance to shipments and accumulating inventory.But the export market is not a straightforward road. Last year, India’s implementation of BIS mandatory certification of China-origin Phthalic anhydride led to India’s export market in trouble, coupled with the impact of anti-dumping duties levied by Brazil, affecting the domestic export of Phthalic anhydride in the short term. But because of low costs, the impact of the policy on domestic Phthalic anhydride production weakened. Exports will resume an uptrend in the second half of the year.
(Source: Oilchem)