The most popular anti-dumping preliminary determin

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On July 27, the Ministry of Commerce made a preliminary determination on the anti-dumping investigation of monobutyl ether of ethylene glycol and diethylene glycol imported from the United States and the European Union. The products under the plan imported from the United States and the European Union were subject to dumping. The market of ethylene oxide and its derivatives has attracted people's attention

on October 8, 2011, Dena (Nanjing) Chemical Co., Ltd. submitted an anti-dumping investigation application on behalf of the domestic ethylene glycol and diethylene glycol monobutyl ether industry. According to the investigation of the Ministry of Commerce, the import volume of the investigated products showed an upward trend during the investigation period, which inhibited and reduced the prices of similar domestic products. The start-up of similar products in the domestic industry took the lead in decreasing and then increasing, but remained at a low level below 25%

monobutyl ether of ethylene glycol and diethylene glycol is only a small part of the whole ethylene oxide derivative market. It can be said that this anti-dumping event only exposed the tip of the iceberg of problems in the whole ethylene oxide derivative market

ethylene oxide is an important organic chemical product next to polyethylene and polyvinyl chloride in the ethylene industry chain. It is mainly used to produce polyols such as ethylene glycol and ethylene glycol ether. Driven by the increasing demand of the textile industry, industrial upgrading, the rise of emerging industries and many other factors, the ethylene oxide derivatives market has ushered in a rapid development period. According to the statistics of chemical industry, in 2011, China's ethylene oxide production capacity was close to 3.2 million tons, and the production capacity of commercial ethylene oxide was more than 1.4 million tons. The production capacity growth of commercial ethylene oxide was faster than that of ethylene glycol

as commercial ethylene oxide is a dangerous chemical, it cannot be directly imported or exported, so the import volume of ethylene glycol is very large. According to customs statistics, the import volume of ethylene glycol in China reached a record 7.27 million tons in 2011, and the self-sufficiency rate of ethylene glycol in China was less than 30%. In the first half of 2012, imports reached 3.39 million tons, an increase of 22% year-on-year. It is expected that the import of ethylene glycol will reach a new high this year. Other ethylene oxide derivatives such as polyether, ethanolamine and glycol ethers also account for a large proportion of imports in the market. In the next few years, the domestic ethylene production capacity has not fully met the domestic demand. How can Hubei new material industry of ethylene oxide achieve the goal of "doubling" its revenue? The situation that derivatives depend on imports cannot be changed

at present, from the perspective of ethylene oxide industrial chain, the upstream ethylene and a series of performance material services are smoothly supplied to customers. There is a bottleneck in the midstream ethylene oxide supply, and the downstream demand is relatively strong. Therefore, the profits are concentrated in the midstream ethylene oxide production link for a period of time. According to the domestic market price on July 27, the ex factory price of ethylene oxide was 10600 yuan/ton, while the market price of ethylene glycol was about 7130 yuan/ton. The price ratio of ethylene oxide and ethylene glycol reached 1.49. The high price of ethylene oxide will inevitably increase the cost of downstream ethylene oxide derivative manufacturers, restrain the operating rate of factories, and objectively give the opportunity of dumping imported products

take ethylene glycol butyl ether as an example. There are four major ethylene glycol butyl ether manufacturers in China, with a total production capacity of 120000 tons/year. Dena (Nanjing) Chemical Co., Ltd. put into operation a 60000t/a ethylene glycol butyl ether unit in july2009. Due to the high price of raw materials ethylene oxide and butanol, the production cost of ethylene glycol butyl ether remains high. In addition, affected by the low price of imported products, domestic ethylene glycol butyl ether manufacturers have basically stopped producing ethylene glycol butyl ether

the downstream vibration will also affect the upstream and online operation. Therefore, to ensure the stable development of ethylene oxide industrial chain, it is very important to cultivate downstream product market. At present, Japan and other developed countries have more than 5000 downstream products of ethylene oxide, while China has only more than 300. The market potential is still very large

insiders said that the national anti-dumping measures have brought benefits to the market of ethylene oxide and its derivatives. In the short term, the implementation of anti-dumping measures will raise the price of imported goods and give domestic manufacturers a chance to breathe. But in the long run, the national anti-dumping measures are only a temporary move, not a panacea. Only by improving the process level, establishing a reasonable ethylene oxide price system, increasing the operating rate of downstream enterprises, and accelerating the structural adjustment of downstream products, can we set up our own fence, effectively prevent external dumping, and truly drive the healthy and orderly development of the entire ethylene oxide derivative market

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