Chemicals

Vietnam - Vietnam protests US anti-subsidy probe into plastic bags

Source: Asia Pulse, 16 September 2009

The Vietnamese Government has protested the US Department of Commerce (DOC)’s preliminary decision on its countervailing duty investigation on subsidizing the retail polyethylene (PE) carrier bags (plastic bags) from Vietnam. There are three mandatory respondents: Advance Polybag, Chin Sheng Co. Ltd. and Fotai Vietnam Enterprise Corp., imposed with anti-subsidy duties of 0.2%, 1.69% and 4.25% respectively.

However, the Vietnamese government said that the subsidy programmes were ended when Vietnam joined the World Trade Organisation (WTO), and they are not applied to any of the mandatory respondents. US Director of the Competitiveness Department Bach Van Mung said that the DOC's preliminary decision partly reflected that the operations of Vietnam's PE bag exporters are not subsidised by the government. He suggested Vietnam needs to make greater efforts to contest the conclusion and provide more evidence to counter inaccurate points outlined in the decision.

China - Polyurethane products account for 30% global total

Source: Xinhua's China Economic Information Service, 17 September 2009

Polyurethane production in China now accounts for around 30% of the world’s total, after the rapid expansion in recent years. The polyurethane production in China reached 3.8 million tons in 2008, with a total value of RMB90 billion (US$13.19 billion). Industry experts expect the demand of polyurethane, known as the fifth plastic, will be strengthened by five major factors like energy-efficient building, automobile, light textile, foreign trade as well as a massive population.

Some industry experts expected the industrial distribution pattern for China's polyurethane production will gravitate towards six focal areas: Shanghai as a focus in the Yangtze River Delta, Guangzhou in the Zhujiang River Delta, Huludao in the Bohai Rim, Lanzhou in Gansu Province, Chongqing Municipality in Southwestern part of China, and Quanzhou in Fujian province as the western bank of the Taiwan Straits.

Japan - August 2009 ethylene output marks first rise in 22 months

Source: Jiji Press, 17 September 2009

Ethylene production in Japan rose 3.6% to 628,200 tons in August 2009 from a year earlier, the first rise in 22 months. The Japan Petrochemical Industry Association pointed out that the increase is due to a rise in China-bound exports amid growing local demand.

The operation rate of the ethylene plants in Japan rose to 97%, a 2.9-percentage-point increase from a year before. However, the association expects the increase in production will not raise petrochemical companies’ earnings because prices are unlikely to rise.

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