China accepts anti-dumping petition against U.S. DDGs export: attache
BEIJING - China has formally accepted a petition from Chinese producers of distillers' dried grains (DDGs) seeking anti-dumping duties on imports of the feed ingredient from the United States, according to a report by U.S. agricultural attaches i...
BEIJING - China has formally accepted a petition from Chinese producers of distillers' dried grains (DDGs) seeking anti-dumping duties on imports of the feed ingredient from the United States, according to a report by U.S. agricultural attaches in Beijing.
The producers are also seeking countervailing duties, also known as anti-subsidy duties, on the DDG imports, said the report. The U.S. embassy received notification of Beijing's acceptance of the petition on Dec. 15, it said.
Under Chinese law, the commerce ministry must make a decision on whether to start an investigation within 60 days of accepting a complaint, but it often makes decisions faster than that, the report said.
The United States is the world's top exporter and China is the top buyer of DDGs, a protein-rich byproduct of corn ethanol used as a substitute for corn and soymeal in animal feed. China relies on imports for almost all DDG needs, with most of the shipments coming from the United States.
Chinese imports of DDGs in the first 10 months of 2015 rose to 5.9 million tonnes, up 14.3 percent from the same period a year ago, as feed mills sought alternatives to expensive domestic corn.
Buyers have slowed their purchasing of imported DDGs recently, however, expecting Beijing to launch an anti-dumping investigation.
U.S. export prices for DDGs were up about $3 on Friday to $160-$165 per short ton, the highest in about a month, with a major exporter covering its short position, three DDG traders in the United States said.
Import restrictions were widely expected and to some extent already factored in to prices, the traders said. Vietnam, the No. 3 importer of U.S. DDGs after China and Mexico, has also stepped up buying, further underpinning the market, traders said.
China previously launched an anti-dumping investigation into DDG imports from the United States in late 2010, later extending the probe before dropping it in mid-2012.
The earlier investigation slowed China's imports of the feed ingredient but did not stop them entirely.
Chinese commerce ministry officials were not immediately available for comment, but the ministry has previously declined to respond to questions on the issue. (Additonal reporting by Michael Hirtzer in Chicago; Editing by Tom Hogue and Matthew Lewis)