The Implementation Of Caprolactam Antidumping Will Affect Downstream Supply.

Recently, the Ministry of Commerce issued a preliminary ruling on the anti-dumping investigation of imported caprolactam originating from the European Union and the United States, and decided that it would originate in the European Union and the United States since January 25, 2011. Imported caprolactam Temporary implementation in margin form Anti-dumping Measures.

Chang Yizhi, a researcher in the chemical industry of CIC, pointed out that the development of caprolactam industry in China has been relatively slow in recent years due to the dumping of caprolactam. The temporary anti-dumping measures against imported caprolactam originating from the European Union and the United States are a significant positive for the development of the domestic caprolactam industry, but the downstream industry of caprolactam will be challenged by the shortage of raw materials.

Chang Yi Chi pointed out that at present, China's imports of caprolactam are about 2/5 from the European Union and the United States. The temporary anti-dumping measures will limit the import of caprolactam in Europe and the United States. At present, the capacity expansion of caprolactam in China is limited, and in the short term, it can not fully meet the domestic market demand. Therefore, the downstream industry of caprolactam in China will be faced with the problem of insufficient raw materials.

According to relevant data, in 2009, the import of caprolactam in China was about 601 thousand and 300 tons. Among them, caprolactam from the EU and the United States accounts for about 40% of the total imports, while the other 60% caprolactam imports come from Russia, Mexico and some other Asian countries.

Zhang Yanlin, research director of CIC, also pointed out that in the long run, anti-dumping measures to import caprolactam can, to a certain extent, promote the development of caprolactam industry in China, thereby reducing the dependence on caprolactam in China, but in the short term, it may affect the supply of raw materials in downstream industries.

Caprolactam is mainly used to produce nylon 6 chips according to the investment analysis and forecast report of the 2010-2015 China basic organic chemical raw materials industry released by CIC consultant. In 2009, the consumption of caprolactam in China was about 930 thousand tons, of which 330 thousand and 600 tons were domestically produced, 601 thousand and 300 tons were imported, and the dependence on imports reached 64.6%. The consumption of caprolactam in China is expected to reach 1 million 200 thousand tons in 2010.