On the eve of the 15th BRICS Leaders’ Meeting held in Johannesburg, South Africa, Brazil made a decision in favor of Chinese and Indian companies in a trade remedy case. Experts suggest that this is a goodwill gesture by Brazil towards the release of China and India. According to information disclosed by the Trade Relief Investigation Bureau of the Ministry of Commerce of China on August 22nd, Brazil has decided to continue suspending anti-dumping duties on polyester fiber yarns originating in China and India for a maximum period of one year. If it is not re implemented upon expiration, the anti-dumping measures will be terminated.
For the polyester industry chain, this is undoubtedly a good thing. According to statistics from Jinlianchuang Information, Brazil ranks among the top five in China’s short fiber exports. In July, China exported 5664 tons of short fiber to it, a 50% increase compared to the previous month; From January to July, the cumulative year-on-year growth was 24%, and the export volume significantly increased.
From the anti-dumping arbitration of short fiber in Brazil in previous years, it can be seen that there has only been one case in the past two years, and the arbitration result is still not taking temporary measures. “Cui Beibei, an analyst at Jinlian Chuang Short Fiber, said that Brazil originally planned to impose anti-dumping duties on polyester fiber yarn originating from China and India on August 22. In the second quarter, China’s short fiber factories experienced export competition, which prompted a surge in short fiber exports. At the same time, Brazil, as the main exporter of polyester filament in China, saw a significant increase in the export volume of its polyester filament in July.
The growth of China’s exports to Brazil is largely related to its anti-dumping policies. According to the final anti-dumping decision released by Brazil in 2022, anti-dumping duties will be imposed from August 22, 2023, to the extent that some customers have already replenished their goods in July. The implementation of Brazil’s anti-dumping measures has been postponed again, and the negative effects on the market in the future are limited, “said Yuan Wei, an analyst at Shenwan Futures Energy.
The continued suspension of anti-dumping duties ensures the smooth export of China’s filament to Brazil. “Zhu Lihang, a senior polyester analyst at Zhejiang Futures, said that demand can be further increased for the polyester industry chain. However, from the actual impact, China’s polyester production exceeded 6 million tons in July, with a volume of around 30000 tons having minimal impact on the industry chain. In a nutshell, it is’ limited benefits’. From the perspective of export distribution, the polyester industry most needs to pay attention to the markets of India, Brazil, and Egypt.
Looking ahead to the second half of the year, there are still variables in polyester fiber exports. Firstly, the BIS certification policy in India is uncertain, and if it is extended again, there will still be a demand for early procurement in the market. Secondly, foreign customers usually stock up at the end of the year, and the export volume has rebounded to a certain extent from November to December of previous years, “said Yuan Wei.
Post time: Aug-28-2023