The European Commission has recently imposed significant antidumping tariffs on imports of 1,4-butanediol (BDO) from China, Saudi Arabia, and the United States. These temporary duties are set between 106% and 114% on imports from China, 52% on those from Saudi Arabia, and from 136% to 143% on imports from the US. This resolution signifies a notable escalation in the EU’s actions against dumping practices.
Richard Carter, an experienced consultant in the chemical industry and a former manager at BASF, underscored the importance of this occurrence, pointing out a possible transition toward a more proactive approach in safeguarding European industries. The European Commission’s detailed 70-page document outlines the reasoning behind these duties, highlighting BDO’s essential function as a precursor in the manufacturing of several coatings, polymers, and solvents.
Currently, the EU comprises four firms that manufacture BDO, employing around 500 people across Germany, the Netherlands, and Italy. A dramatic rise in BDO import quantities from the specified nations, swelling from 49,000 tonnes in 2018 to 89,000 tonnes in 2024, triggered this action. Ineos, a prominent figure among EU manufacturers, has been particularly vocal in its push for antidumping measures, especially against imports that threaten its business.
Carter attributed the situation to China’s vast production capacity, which surpasses that of the EU by ninefold, allowing Chinese manufacturers to offer extremely competitive pricing. This scenario allegedly enables European manufacturers to reduce domestic output in favor of sourcing BDO from their US plants.
In addition to BDO, Ineos has expressed concerns about imports of various chemicals like polyvinyl chloride, monoethylene glycol, terephthalic acid, butyl acetate, and polyolefins. The company has previously criticized the European Commission for having inadequate personnel and sluggish response times in executing antidumping investigations, which typically last between 12 to 15 months. Provisional tariffs are anticipated to be enacted within three to six months, with final tariffs potentially following six to nine months later, as stated by Mohamed Chilmeran, a petrochemical analyst at Wood Mackenzie.
The report rebutted the assertions that elevated costs made the EU industry uncompetitive. In spite of profitability in 2021 and 2022, the influx of dumped imports significantly affected BDO prices, hindering EU manufacturers from recouping costs and leading to lower production rates. The inquiry concluded that these imports were the primary factor behind the competitive disadvantage experienced by the Union industry.