EU launches antidumping investigation on tires from China

The European Commission launched an investigation to assess whether antidumping measures will be implemented against Chinese imports of passenger car and light truck tires May 21.

This decision follows a complaint from the EU tire industry, which alleged that Chinese imports were harming EU producers.

If the investigation determines that the EU tire industry is experiencing injury or the threat of injury due to imports from China, the Commission may implement antidumping duties on these imports, it said in a statement.

The investigation is set to be completed within 14 months of its initiation. Provisional antidumping measures could be applied within eight months if preliminary findings confirm dumping and resulting injury.

Currently, the EU enforces antidumping and anti-subsidy measures on tire imports for buses and trucks from China.

Weak demand persists

Participants in the European rubber market noted that weak tire demand has impacted purchasing demand for the commodity.

One rubber producer said competitively priced tire imports have reduced demand for domestic tires, which has also reduced rubber demand.

According to several market sources, the European rubber market has seen sustained low demand, with one producer saying demand is "stable at low levels."

The weak demand for rubber, coupled with falling feedstock costs, has caused the spot prices of synthetic rubber to fall.

Platts, part of S&P Global Commodity Insights, last assessed styrene butadiene rubber 1500-1502 dry grades FD NWE at Eur1,750/mt May 16, down Eur125/mt from May 9.