Taiwanese Nylon Chip Makers Poised to Benefit From Lower Tariffs Imposed by China

Taipei, Oct. 22, 2009 (CENS)--China's Ministry of Commerce (MOC) has recently resolved to impose anti-dumping tariff rates of 4% to 4.3% on nylon chip imports from Taiwanese suppliers, including Formosa Chemical & Fiber Corp., Li Peng Enterprise amd Zig Sheng Industrial Co., much lower than those levied on imports from the U.S., Europe and Russia.

The MOC made the resolution after completing probes of the alleged dumping practices by nylon chip suppliers of Taiwan, the U.S., Russia and Europe in the mainland Chinese market.

MOC investigated nylon chip imports from the said areas from October 1 of 2007 to Sept. 31 of 2008 for their alleged dumping actions, and recently announced its rulings. Taiwanese exporters are expected to benefit from lower punitive tariff rates to become more competitive in the mainland market for nylon chips.

It is reported that China's annual demand for nylon chips is around 1.2 million tons, with 540,000 tons of which imported from abroad. Li Peng and Zig Sheng are China's two major Taiwanese suppliers. Currently China absorbs 70% of Li Peng's exports of nylon chips and 50% of Zig Sheng's.

Li Peng is regarded as the world's largest manufacturer of nylon chips and filament with a daily output of 800 tons, double that of Zig Sheng. Insiders believed that China's lower tariffs on Taiwanese nylon chip manufacturers would give a big shot to Taiwan's nylon industry.