Malaysia launches anti-dumping investigation on PET imports from China, Indonesia

Malaysia's Ministry of Investment, Trade, and Industry (MITI) has launched an anti-dumping investigation into imports of polyethylene terephthalate (PET) originating from or exported by the People's Republic of China and the Republic of Indonesia.

The investigation was launched Aug. 9 following a petition filed by a domestic producer on July 10, according to an official statement seen by S&P Global Commodity Insights.

The petitioner alleged that PET imports from China and Indonesia were being sold at prices significantly lower than their domestic selling prices in the originating countries. The complaint further asserted that these dumped imports have increased in absolute quantity, resulting in material injury to the petitioner.

Despite the investigation, market sources suggest that the impact on the Chinese PET market will be minimal.

"China exports only small quantities to Malaysia, so I believe the impact will be negligible," one Chinese trader said Aug. 12.

Echoing this sentiment, a Chinese producer said: "We do not foresee any significant impact as we do not export to Malaysia."

MITI noted that a preliminary finding will be made within 120 days from the start of the investigation, though the exact start date was not specified.

"If the preliminary determination is affirmative, the government will impose a provisional anti-dumping duty at a rate necessary to prevent further injury to the domestic industry," the ministry added.

Platts, part of Commodity Insights, assessed FOB Northeast Asia PET prices $10/mt lower on the week at $880/mt Aug. 7, while FOB Southeast Asia prices were up $10/mt week on week at $970/mt.

In the Chinese domestic market, Platts assessed prompt cargoes of POY150D/48F and DTY150D/48F lower at Yuan 7,600/metric ton and Yuan 9,150/t ex-works on Aug. 7, registering weekly decreases of Yuan 125/t and Yuan 80/t, respectively, according to Commodity Insights data.

Meanwhile, prices of FDY150D/96F were down Yuan 165/t on the week to Yuan 8,150/t ex-works, and prices of PSF grade were down Yuan 135/t week on week at Yuan 7,600/t ex-works, Commodity Insights data showed.