September 22, 2004

Analysts Warn of Possible Anti-Dumping Measures Against Exports of China's Vitamin E Products

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China's vitamin E exports have been rising steadily in the past few years but the unit selling of the products have been on the decline. Vitamin E manufacturers in China have resorted to lowering prices in order to maintain their competitiveness in the global markets.

Official statistics released by Beilun Customs in Ningbo city, Zhejiang province of eastern China, showed that the 12,000 metric tons of vitamin E exports recorded for the first eight months of 2004 is already nearing the 13,000 metric tons exported for the whole 2003. At the same time, export prices have fallen by 10.5% compared with last year's price levels. This year, China's vitamin E export prices have dropped for the sixth consecutive year due to intense market competition.           

Between 75%-80% of China's vitamin E products are considered low-end products mainly applied in animal feed production. The remaining 20%-25% is for human consumption, either in the production of pharmaceutical products or in food and beverages.       

The main markets for China's vitamin E products are USA and EU. In the first eight months of this year, vitamin E exports through Zhejiang province's Beilun port to these two markets were 6,200 metric tons and 4,500 metric tons respectively, and they accounted for 89.2% of the province's total exports for the period. Exports from other areas in China are of similar pattern.

Market analysts warned that China's low priced vitamin E products might elicit a retaliatory response from the USA or EU countries, with its export prices to these markets having fallen continuously for six years. If anti-dumping measures were to be taken against China's exports of vitamin E products, manufacturers in China will certainly face tough times ahead.