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Chinese R134a faces US sanctions

16135166_lUSA: The US International Trade Commission has sided with Mexichem in agreeing that Chinese R134a is allegedly being subsidised and sold at unfair prices. 

With all six commissioners in agreement, the US Department of Commerce will continue to conduct its investigations on imports of R134a, with its preliminary countervailing duty order due on or about January 15, 2014, and its preliminary antidumping duty order due on or about March 31, 2014.

According to Mexichem, imports of R134a from China are said to have increased from 4,369 tons in 2010 to 12,868 tons in 2012 before declining slightly in first half of this year. In addition to these significant increases, the imports entered at exceptionally low prices. Drawing on customs data, Mexichem maintains that import prices fell from $5,280 per ton in 2010 to $4,130 per ton in 2012 and then plummeted to $3,400 per ton in the first half of this year.

The US R134a industry is said to have suffered as a result, losing market share and being forced to cut prices at the expense of profit in an effort to compete.

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