European chemical market divided over antidumping action

Europe's chemical industry is increasingly polarized over how to respond to growing import pressure as producers call for faster antidumping action, while buyers and traders emphasize supply stability and market flexibility.

Mounting import pressure

The European chemical market is nearing a potential shift as some European producers intensify efforts to curb low-priced imports, particularly from Asia. Europe's higher energy costs, coupled with strong legislative measures to reduce carbon emissions, have made the region uncompetitive for production, sources said. As a result, European producers have turned to antidumping duties in an attempt to protect themselves from cheap imported materials that have a higher carbon footprint and are frequently priced below European production costs and domestic market levels.

A producer in the acetyls market said an antidumping dossier has been in preparation for over a year, calling it "the clearest case of dumping" their legal advisers have seen. Senior industry executives have discussed the issue with EU leaders, according to the same source.

Backlog slows EU response

The same producer said "several dozen" antidumping cases across the chemical industry are pending review by EU authorities, stretching regulatory capacity. To bridge the gap, some in the industry favor a temporary "blanket placeholder" until investigations are processed. At present, for an antidumping case to be assigned an officer, up to three months could be required.

Another producer cautioned that while antidumping measures may ultimately affect trade flows, it is difficult to predict any concrete impact. The producer noted that not every market is yet focused on the issue and that it may take months before effects become visible.

The effectiveness of antidumping duties have been a contested topic in the European industry, as some players question the results the measures can yield.

"ADDs will affect the market for a maximum of five months," a polyols producer said.

Adapting to supply chain needs

Despite increasing talk about antidumping duties, importers are focused on 2026, which many believe will not see the implementation of ADDs. This sentiment is based on the long period required for duties to be implemented. Despite this, a distributor said that inserting clauses tying offers to "current duties" and keeping flexibility to switch between regional and Chinese supply is still essential.

While many participants expect duties will not be applied in most markets in 2026, some importers are hesitant to accept offers from Asian suppliers for fixed prices and volumes, available for one or two quarters. Chinese exporters are increasingly willing to lock prices and volumes for three to six months, an approach that was uncommon in previous years. Importers that do not expect antidumping duties to be implemented in 2026 have taken advantage of the shift in Asian strategy and are actively offering fixed quarterly pricing.

"We work a lot with fixed prices," a trader said.

Buyers see limited short-term disruption

Buyers remain conscious of the need to balance their supply through European production. An acetyls buyer said near-term supply security is the priority under a duty scenario. Several sources confirmed that Chinese producers are working with regional partners to offer a mixed cost structure so that some volumes may face tariffs and others will not.

In certain markets, suppliers of imported material have guaranteed pricing even if antidumping duties are applied.

For now, the market shows a split between European producers pressing for faster regulatory action and consumers prioritizing supply flexibility. European authorities are seen as increasingly aware of the issue, but the pace of investigations remains a key variable as political attention rises and case volumes build.