China Drying News China recently started an anti-dumping investigation against imported pyridine originating in Japan and India.

It was learned from the industry that on November 28th, the global lead pyridine manufacturer Fan Tuluth of the United States and another major producer India Ji Youlian increased the pyridine price by 1,000 yuan/ton, the former rose to 30000-31000 yuan/ton; It is raised to 32,000 yuan/ton. Analysts expect that with the establishment of anti-dumping, pyridine prices may have a 30% or so increase.

It is understood that this is the third price adjustment in about one month period. Previously on October 31 and November 13, India's Ji Youlian had successively raised the price of pyridine by 2,000 yuan/ton and 1,000 yuan/ton. Domestic companies subsequently followed the rise. In some areas, the quotation has been raised to 33,000 yuan/ton recently.

Industry insiders pointed out that this round of pyridine price increases was not unrelated to the anti-dumping investigation initiated by the Ministry of Commerce against imported pyridine originating in Japan and India.

On August 2 this year, the Ministry of Commerce received four companies from Anhui Guoxing Biochemical Co., Ltd. (Red Sun Subsidiary), Nanjing Hongtai Biochemical Co., Ltd. (Red Sun Subsidiary), Shandong Greenba, and Nantong Fantailus. On behalf of the domestic pyridine industry formally submitted an anti-dumping investigation application. Since then, the Ministry of Commerce announced that it had initiated an anti-dumping investigation against imported pyridine originating in Japan and India.

According to experts of the Pesticide Association, the dumping margin of pyridine originating in India (that is, the range below the reasonable cost price) is about 50%, and the dumping margin of pyridine originating in Japan is about 45%. The final tax rate may be in this range. According to the anti-dumping process, the Ministry of Commerce may publish the preliminary results of pyridine products from November 21, 2012 to May 21, 2013, and tax them accordingly.

“At present, India’s Ji Youlian is threatening China’s downstream companies through continuous price increases, implying that anti-dumping interim sanctions that were not to be announced until the first quarter of next year have already played a role in advance. Plus, the pyridine from Japan is almost extinct and empty. Nearly one kiloton of the gap, which further triggered the domestic pyridine cargo price increases.” A researcher at CICC said.

He pointed out that China's imports of pyridine from India and Japan accounted for nearly 85% of total imports in 2011, and the country's pyridine gap was about 24,000 tons, which was offset by imports. In this case, the decrease in supply from India and Japan will inevitably affect domestic production. If anti-dumping is established in the future, there will be a shortage of supply in the domestic market, and it is expected that the price of pyridine may rise by about 30% in the short-term. By then, pyridine prices are expected to rise to 35,000 yuan / ton.

At present, Red Sun, which has a pyridine capacity of 62,000 tons/year, has become the largest pyridine manufacturer in the world with outstanding cost advantages and a complete pyridine industrial chain. Sanonda also has a capacity of 10,000 tons/year, but it has not yet been put into production due to technical reasons.

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