The Chinese government slapped temporary anti-dumping duties on South Korean and Japanese nitrile butadiene rubber (NBR), a component that goes into a range of products from automotive parts to laboratory gloves, further exacerbating Korean exporters caught in the crossfire of ongoing trade war between the world’s two largest economies.
The China’s Ministry of Commerce on Monday delivered a preliminary finding on anti-dumping investigation on Korean and Japanese exports on the probability of their injuries to domestic industry, requiring Korean sellers to place deposits from 12 percent to 37.3 percent for their shipments to China starting July 16.
Targeted Korean names Kumho Petro Chemical will have to set aside deposits of 12 percent and LG Chem 15 percent for such exports to China.
Japanese companies were slapped with preliminary duties from 18.1 percent to 56.4 percent.
NBR is a type of synthetic rubber. It is highly resistant to oil and is used for fuel hose, shoe soles, and automotive parts on top of many others.
The Chinese authority had launched an anti-dumping probe last year at the request of state-owned China National Petroleum Corp.
Korean rubber makers vowed to do their best to lower the anti-dumping duties as the latest ruling is only a preliminary decision. A final decision is due in November.
According to Kumho Petro Chemical, NBR is responsible for 12 percent of its total synthetic rubber exports to China. For LG Chem, China takes up about 20 percent of its overall NBR global sales.
As of noon Tuesday, shares of Kumho Petro Chemical were trading 2.79 percent higher at 110,500 won apiece, and those of LG Chem down 1.83 percent at 322,000 won.
