25 February 2021 - The US Department of Commerce (DoC) announced on Thursday its affirmative preliminary determinations in the antidumping duty (ADD) investigations of methionine from France, Japan, and Spain.
Preliminary dumping rates for methionine imports from Adisseo in France would be 43.82%, while all other French imports would be subject to a 16.17% duty.
The dumping rates for product from Spain would be 31.98%.
The highest dumping rates were for methionine imports from Japan at 135.10%.
Novus filed the ADD petitions on methionine from France, Japan and Spain on 29 July 2020. According to Novus, imports of methionine from the three countries are priced substantially lower than domestic producers’ shipments, stressing that dumping can result in the reduction or elimination of domestic production.
The volume of methionine imports into the US from Spain, France and Japan increased by more than 200% from 2017 to 2019, and another 29% between Q1 2019 and Q1 2020, according to statistics from the US Census Bureau.
Today’s preliminary findings follow a decision by the United States International Trade Commission (USITC) in September 2020, stating that there is a reasonable indication that the US industry is “materially injured by reason of imports of methionine” from these countries that are allegedly sold in the US at “less than fair value."
“This preliminary decision confirms what we believed – that our industry has been harmed by unfair trade practices,” said Ed Galo, Novus vice president and chief commercial officer – Americas. “Fair and competitive trade is critical to the health of our industry and all industries. Novus is grateful that the ITC and Commerce exists to ensure fair trade for all.”
Final determinations by the DoC are now expected by 10 May. The USITC will provide final determinations by 24 June. Issuance of final orders is expected by July.
Sumitomo Chemical, meanwhile, commented: "We are aware of the recent interim findings made by the Department of Commerce resulting in a decision to impose preliminary dumping margins against imports of methionine from Spain, France and Japan. Our firm position is that the sales of our methionine products do not harm the US market, and in fact, have been contributing to protect and benefit the US farmers who are in a dire situation impacted by Covid-19 pandemic and the surge in prices of agricultural material. We will continue to vigorously defend our case in the subsequent processes before the International Trade Commission and Department of Commerce aligned with the best interest of the methionine industry and that of our customers."
Global methionine capacity is nearly all to be found in Europe, East Asia, North America and Southeast Asia, without any single region having global dominance. However, the anti-dumping investigation in the US had caused some suppliers to stop offering to the US until the investigation is complete, creating a tight market.
Additional production shutdowns in the US caused by severe weather have further tightened the methionine spot market.
US methionine spot prices are $4.00-4.50/kg DDP, which is the highest the amino acid has been since Feedinfo began tracking US prices in 2018. The average methionine price of $4.25/kg is up 52% from the January average of $2.79/kg DDP US, and 91% from the average price of $2.23/kg DDP US one year ago.
