December 13, 2011


China's imports of US DDGS on track for recovery


China imported slightly over 1.3 million tonnes of US distillers dried grains (DDGS) in the first 10 months of this year, indicating a slow recovery since an official antidumping probe was imposed late last year, data by an intelligence firm showed Monday (Dec 13).


Chinese farms and feed traders bought 3.1 million tonnes of DDGS from the US last year, prompting an antidumping inquiry from Beijing after the US opened a probe into alleged Chinese wind-power subsidies.


The US Grains Council (USGC) said in a weekend update that Chinese interest in US DDGS exports appears to be reviving, following two successful recent workshops the council organised in the cities of Guangzhou and Qingdao.


China is still the second-largest export market for US DDGS after Mexico, the council said.


China's imports of DDGS in October reached 163,812 tonnes, down 7% from September, according to customs data. November data will only be available later this month.


The pace of imports has recovered from the year's low of 66,026 tonnes posted in May, when Chinese buyers feared punitive tariffs would be levied against the commodity.


Those fears eased in recent months after the China National Grain and Oils Information Centre downplayed the likelihood of tough sanctions.


The USGC said the bilateral trade remains strong.


"While the pace [of imports] has slowed compared to last year's record volume, the US continues to export large volumes of DDGS to China, despite an antidumping case initiated by the Chinese government last winter," the council said.


Working with FoodChina Co, the USGC organised recent Guangzhou and Qingdao workshops on US DDGS.


FoodChina is an online agricultural trading company set up in 2000 by state grain trading giant COFCO Group Co and foreign partners, including Continental Grain Co, Archer Daniels Midland Co (ADM) and Rabobank.

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