The US International Trade Commission launched a probe into the imports of synthetic rubber used in tyres and other automotive components from Brazil, Mexico, Poland and South Korea. This is to determine whether the dumping of the products injured domestic producers.
In a notice published in the Federal Register, the ITC announced that it has launched an investigation into the alleged dumping of emulsion styrene-butadiene rubber (ESBR) in response to a July 21 petition by Texas-based Lion Elastomers LLC and Louisiana-based East West Copolymer LLC.
The deadline given to the ITC to reach a preliminary determination on its anti-dumping duty investigation is on September 6.
ESBR is produced as a dry, crumb-like material that is sold in pressed bales. The petition covers all forms of ESBR in its “pure” form as well as a formula containing additional petroleum-based processing oil.
Lion and East West argued in their petition that the dumping of ESBR at less than fair value hurts their business and will continue to do so if action is not taken.The companies name 14 producers and exporters in its petition, one each from Brazil, Mexico and Poland, and 11 from Korea. The Korean companies include LG Chem Ltd. and Hyundai Glovis Co.
According to the petition, Brazil’s Lanxess Elastomeros do Brasil SA should receive the highest anti-dumping duty margin, at approximately 60 to 70%. Mexico’s producer should receive a margin of approximately 22% and Poland’s should face a margin between 22 and 44%, while Korea’s margin should be between 40 and 48%.
The petitioners also said that members of the International Union of Operating Engineers that work at the companies’ plants also support the petition. Goodyear Tire & Rubber Co. subsidiary Goodyear Chemical is the only major ESBR producer in the United States without a position on the petition, but union members at its Texas plant support the investigation.
ITC previously granted an anti-dumping petition against ESBR importers in Brazil, Korea and Mexico based on a petition launched in 1998, according to Lion and East West. The anti-dumping duty margins stemming from that investigation ranged as high as 118% for some Korean producers and exporters.
The companies in the ITC probe are Lanxess Elastomeros do Brasil SA, Daewoo International Corp., Glovis America Corp., Hyundai Glovis Corp. LTD., Kukje Trading Corp., Kumo Petrochemical Co. LTD., Kumho Tire Co. Inc. LG Chem LTD.-Daesan Complex, LG Chem LTD., LG Chem LTD- Seoul HQ, Sungsan International Co. LTD., We International Co. LTD., Industrias Negromex SA de CV- Planta Altamira and Synthos Dwory Spolka Z Ograniczona Opowiedzialnoscia Spolka jawna.