Global PET Industry Faces Multiple Anti-Dumping Measures from EU, Korea, Mexico, and More

The global market for Polyethylene Terephthalate (PET) resin is facing a wave of anti-dumping measures, predominantly targeting imports from China. With the EU, Korea, Mexico, and other nations introducing stringent duties and initiating investigations, the landscape for PET resin trade is rapidly changing. This article will dive into the specifics of these actions, exploring their implications for the PET industry, particularly focusing on China, which is at the center of these regulatory moves.

EU’s Anti-Dumping Duties on PET Resin

Background and Implementation

On April 3, 2024, the European Union’s Directorate-General for Trade announced a significant measure aimed at protecting its domestic PET industry from what it described as unfair competition due to dumping practices. The European Commission has imposed definitive anti-dumping duties on certain PET imports from China, a move that will be in effect for five years. This decision follows the preliminary imposition of duties ranging from 6.6% to 24.2% on November 28, 2023.

The scope of this measure is noteworthy, as it also includes recycled PET (rPET) granules, which are now treated equivalently to virgin bottle-grade PET for anti-dumping purposes. This approach indicates the EU’s intention to protect not only the primary production sector but also the recycling industry, which is becoming increasingly vital in the context of the EU’s environmental and sustainability goals.

South Korea’s Four-Month Anti-Dumping Duty

On July 30, 2024, South Korea’s Ministry of Economy and Finance announced a temporary anti-dumping duty on PET resin imports from China. The duty, which ranges from 6.6% to 24.2%, is effective for four months, lasting until November 29, 2024. This measure is intended to protect South Korea’s domestic PET industry from the adverse effects of low-priced Chinese imports, which are believed to be undercutting local manufacturers.

Mexico’s Initial Anti-Dumping Measures

In another significant development, Mexico, on August 9, 2024, imposed provisional anti-dumping duties on PET resin imports from China. These duties, ranging from 34% to 63%, follow a preliminary determination by Mexican authorities. The scope of Mexico’s measure is somewhat narrower, as it excludes PET resins derived entirely from recycled PET bottles. This four-month measure aims to provide immediate relief to domestic producers while the investigation continues.

Malaysia’s Anti-Dumping Investigation

On August 9, 2024, Malaysia’s Ministry of Investment, Trade, and Industry launched an anti-dumping investigation into PET resin imports from China and Indonesia. This move was initiated in response to a petition by Recron (Malaysia) Sdn. Bhd., a local PET producer. The investigation will determine whether these imports are being sold at unfairly low prices and causing harm to the domestic industry. A preliminary determination is expected within 120 days from the initiation of the investigation.

Indonesia’s Pending Measures

Indonesia is also considering imposing anti-dumping duties on imported plastic packaging, particularly from China and Malaysia. The Indonesian Biaxially Oriented Film Association (ABOFI) has been advocating for these measures to curb the influx of cheap imports, which they argue is threatening the viability of the domestic industry.

Implications for the Global PET Market

These anti-dumping measures reflect a growing trend of protectionism in the global PET market, with several countries seeking to shield their domestic industries from perceived unfair competition. For China, these duties represent a significant challenge as they could lead to reduced market access and potentially force Chinese producers to seek alternative markets or adjust their pricing strategies.

For the importing countries, these measures could lead to higher prices for PET resins, potentially increasing costs for downstream industries, including packaging and beverage manufacturers. However, they are also likely to provide a lifeline to domestic producers who have struggled to compete with low-priced imports.

Conclusion

The global PET resin market is undergoing a substantial shift as a result of these anti-dumping measures. The actions taken by the EU, Korea, Mexico, and others underscore the importance of fair trade practices but also highlight the complex interplay between domestic interests and global trade dynamics. Companies involved in the PET industry must stay informed and agile, adapting to these regulatory changes to navigate the challenges ahead.