The Canberra-based Australian Customs and Border Protection Service says anti-dumping measures, implemented to stop U.S. manufacturers exporting PVC at prices less than the resin's normal value in Australia, should continue.
The service said in its report on the subject that without anti-dumping measures, it is likely that dumped U.S. PVC would undercut other imports in the Australian market and significantly undercut selling prices.
“Undercutting would likely lead to further pressure on the industry's prices, resulting in price depression and suppression,” the 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. The Australian Customs and Border Protection has invited industry on March 4 to respond to whether the measures imposed on U.S. imports should continue for another five years.
Melbourne-based Australian Vinyls Corp. Pty. Ltd., Australia's sole PVC manufacturer, asked the customs service to continue the measures. After considering the vinyl maker's submission, the service launched an inquiry May 23.
The investigation found that the revenue, volume, prices, profits and profitability of Australia's PVC market have fallen since 2008-09, while costs have risen.
The customs service said the data showed that Australian Vinyls Corp. was susceptible to more injury if the Australian PVC market deteriorated further or if other market pressures emerged.
Investigations found there were no PVC exports from the U.S. in 2009, 2010, and 2011 through June 30. 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,” the customs service said.
The service 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 October.
The revised law follows recommendations from the government's independent Productivity Commission that advocate a strengthening of the nation's anti-dumping laws and reducing costs for companies seeking remedies against dumped products.