CANBERRA, AUSTRALIA (Nov. 18, 1:35 p.m. ET) — The Canberra-based Australian Customs and Border Protection Service (ACBPS) has decided anti-dumping measures, implemented to stop U.S. manufacturers exporting PVC at prices less than the resin's normal value in Australia, should continue.
ACBPS said without anti-dumping measures, it is likely dumped U.S. PVC would undercut other imports in the Australian market and significantly undercut Australia's selling prices.
“Undercutting would likely lead to further pressure on the industry's prices, resulting in price depression and suppression,” ACBPS's report said.
Anti-dumping measures currently apply to exports from Japan and the U.S., but the measures for U.S. imports expire Jan. 22, 2012. On March 4, ACBPS invited industry to respond to whether measures imposed on U.S. imports should continue for another five years.
Melbourne-based Australian Vinyls Corp. Pty Ltd (AVC), Australia's sole PVC manufacturer, asked ACBPS to continue the measures. After considering AVC's submission, ACBPS launched an inquiry May 23.
ACBPS's investigation found the size and performance of Australia's PVC market has fallen since 2008-09. Revenue, volume, prices, profits and profitability have fallen, while costs have risen.
ACBPS said that showed AVC was susceptible to further injury should the Australian PVC market deteriorate further or if other market pressures emerged.
Investigations found there were no PVC exports from the United States. in 2009, 2010 and to June 2011. However, U.S. exports accounted for nearly 50 percent of all imports into New Zealand from January 2010 to February 2011.
“This indicates the current measures have contributed to the cessation of imports from the U.S. into the Australian market,” ACBPS said.
ACBPS compared the import price of U.S. PVC into New Zealand from April 2010 to February 2011 to other countries' import prices. The data showed U.S. imports undercut import prices from other countries by an average of 22 percent.
In June, the Australian Government announced changes to anti-dumping laws, aimed at making measures easier to impose. Australia's Federal Parliament passed the first piece of legislation outlining the proposals in Oct.
The revised law follows recommendations in a report by the Productivity Commission, the Australian Government's independent research and advisory body, which recommended strengthening the nation's anti-dumping laws and reducing costs for companies seeking remedies against dumped products.