European Commission Launches Anti-Dumping Investigation into Chinese Polyether Polyols Imports

The European Commission has officially launched an anti-dumping investigation into imports of certain polyether polyols originating from China following a complaint filed by leading European producers, including BASF, Covestro, PCC Rokita, Shell, and Chimcomplex. The investigation aims to determine whether Chinese manufacturers have exported polyether polyols to the European Union at unfairly low prices, causing material injury to the domestic industry.

The product under investigation includes specific polyether polyols used extensively in the production of polyurethane foams, coatings, adhesives, sealants, elastomers, and insulation materials. The Commission alleges that imports from China may have benefited from significant market distortions, including government intervention in raw materials, energy, finance, labour, and industrial policies. As a result, the investigation will assess whether domestic Chinese prices accurately reflect market conditions or whether an alternative benchmark should be used to calculate dumping margins.

Mexico has been identified as a possible representative country for this analysis.

According to the complaint, imports of Chinese polyether polyols have increased substantially in both volume and market share, putting downward pressure on prices and negatively affecting the financial performance, sales, profitability, and employment of EU manufacturers. The Commission will also examine alleged raw material distortions, particularly involving propylene oxide, a key feedstock used in polyether polyol production, to determine whether additional trade defence measures are warranted.

The investigation will cover dumping activities between 1 April 2025 and 31 March 2026, while injury to the EU industry will be assessed over the period from 1 January 2022 through the investigation period. The Commission intends to register imports during the investigation, creating the possibility of retroactive anti-dumping duties if unfair trade practices are confirmed. A final decision is expected within 14 months, with provisional measures potentially imposed within eight months.

Source: European Commission