EU removes anti-dumping duties on PSF

The European Union removed anti-dumping duties on Polyester Staple Fibers (PAF) from India, Indonesia, Thailand and Australia. This should result in higher sales on the European market, helping to absorb excess capacities in Asia. EU still maintains anti-dumping duties on PSF from China, Korea, Belarus and Saudi Arabia. The duties were set to expire in 2005, but had been extended during the expiry review. Duties ranged between 14.70% and 35.40% for Indian exports of PSF, 8.40% and 15.80% for Indonesian fibers and 15.50% to 27.70% for similar products from Thailand. The European Commission actually refused to reimpose duties for 5 more years, as requested by European fiber producer association, the CIRFS.

Brussels maintains anti-dumping duties on PSF imports from Belarus and most importantly from China, South Korea and Saudi Arabia. Duties on Chinese products range between 4.90% and 49.70% while those on Korean PSF are between 0% and 10.60%. These duties will not expire before 2010 and in addition, two investigations were launched on PSF from Malaysia and Taiwan. EU's decision to repeal sanctions on Indian, Indonesian and Thai products could offer an opportunity to develop sales in European Union.

In India, Reliance and Indo Rama Synthetics will raise capacities by a total 361,000 tonnes in 2007 with a new PSF producer launching 180,000 tonnes. This should result in excess capacities of about 300,000 tonnes until 2010. In Indonesia, excess capacity would already reach 140,000 tonnes. Thailand would also face excess capacities with exporters tempted to lower their prices and to sell more products on EU's market. EU's Commission rejected remarks by CIRFS, as rising consumption in the three major polyester countries should balance the increase in capacities.

In India and Indonesia, the major part of domestic production is sold on domestic market. The share of Thai exports is much higher, but excess capacities are lower in this country. There is no indication that the fast growing demand for PSF worldwide would stop in the near future.