Beijing, China - China's Ministry of Commerce ended the anti-dumping tariffs ranging from 4.5% to 13.6% on 1,4 - BDO (butanediol) imported from Saudi Arabia and Taiwan on 24 December, 2014.
Such tariffs were issued in 2009 after investigation following an application filed by China's BDO makers led by Shanxi Sanwei. According to MOFCOM's investigation report, imports from Saudi Arabia and Taiwan took up about 40% of the China market before the tariffs.
Since 2009, China's BDO capacity has more than tripled to over 1,500kT/year, and is expected to exceed 2,000kT/year in 2015, said secretary-general of the China Polyurethane Industry Association Zhu Changchun. Presently, a majority of China's BDO consumption comes from domestic production.
"China's BDO facilities currently have a low operating rate - for instance a 50% rate at Sanwei - and the end of the tariffs will no doubt cast a shadow over the sector," said Liang Guosheng, board secretary of the company.
"However, we are not expecting a plunge in the price as it's already at a rather low level," added Liang.