Nantong, Jiangsu – Chinese polyurethane memory foam mattress and pillow manufacturer Healthcare Co. has reported four Chinese TDI makers to national antitrust authorities, according to a report by newspaper Shanghai Securities News.
TDI makers including Cangzhou Dahua, Gansu Yinguang Juyin, Yantai Juli and Fujian Southeast Electrochemistry, the four largest local companies in the segment with around 60% of the China market, have been reported to the Price Supervision and Inspection & Anti-monopoly Bureau at the National Development and Reform Commission, according to the paper.
Shanghai Securities News reported on 10 November that Healthcare Co. had hired investigators, who had found that the four TDI makers held teleconferences and meetings to coordinate price increases on many accounts
The paper added that Healthcare said the four firms charged local consumers more than they have been asking for in export markets for a long time.
China’s TDI market has seen considerable price volatility over the past few years. According to Dahua’s own filing, the price reached its low point for the year in July, and bounced back to CNY 35,000 ($5,273)/ton in August, while the price during the first nine months in 2017 averaged at CNY 23,600/ton, more than double the 2016 nine-month price.
‘Product price is subject to the impact by a series of factors such as market conditions, supply and demand and policies,’ Dahua replied to the accusation in a stock market filing on 9 November.
‘Our company prices the TDI products strictly in accordance with market rules and relevant laws and regulations without any price manipulation. We have not received any enquiries from the authorities,’ it added.
Over the first nine months in 2017 Healthcare Co, which makes memory foam mattresses and pillows, raised its revenue by 36% year on year to CNY 1.7bn. Net profit increased by 2% compared to the 2016 quarter to CNY145m. The company claimed its annual profit would have grown by 45% to 50% if it prices had found their natural level, said local reports.
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