December 21, 2015


Chinese petition for anti-dumping duties on US DDG imports accepted


A petition to apply anti-dumping duties on feed ingredient imports from the US had been accepted by China, US agricultural attaches in Beijing reported.


The petition was launched by Chinese producers of distiller's dried grains (DDGs) who also sought for anti-subsidy duties on DDG imports.


China's commerce ministry is required by law to decide whether it would begin investigation within 60 days of accepting the petition, although it is expected to quickly respond to the matter. 


China is currently a major buyer of DDGs, with the US as the world's key exporter. It is heavily dependent on supplies from overseas to meet its DDG needs, with local feed mills preferring less costly alternatives to domestic corn.


According to a Reuters report, Chinese DDG imports increased to 5.9 million tonnes in the first 10 months of this year, a 14.3% rise from the same period in 2014. However, the petition had recently caused purchases of DDG imports to slow down. It also influenced US export prices for DDGs to rise about US$3 last week, to US$160-US$165 per tonne, the highest in about a month, said traders in the US.


Meanwhile, Vietnam - the number three importer of US DDGs - expedited buying, further supporting market prices.

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