Feb 25, 2008 (LBO) – Sri Lankan coconut-shell-based activated carbon maker Haycarb expects stronger demand after Europe and the United States slapped anti-dumping duties on Chinese carbons.

"We would probably see the effect [of anti-dumping duties] towards the end of the year," Haycarb managing director Ananda Hettiarachchy.

It would take time for users to shift from mainly coal-based activated carbon to other types like coconut shell-based products, he said in an interview.

Activated carbon is used in gas masks, to purify water as well as in other industries like gold extraction.

The US and European governments have imposed countervailing or anti-dumping duties on imports of steam activated carbon from China.

Industry analysts have said that Chinese activated carbon manufacturers could lose their US market due to the hefty anti-dumping duties.

The US Department of Commerce has charged Chinese steam-activated carbon manufacturers with dumping in the United States, imposing duties ranging between 62.08 per cent and 228.11 per cent.

Europe has imposed countervailing duties (CVDs) on particular grades of Chinese activated carbon while the US has imposed CVDs on any carbon imported from China into the US.

This has helped US carbon manufacturers to operate their factories at full capacity and push prices up, Hettiarachchy said.

When China dumped coal-based activated carbons, some users shifted from coconut-shell based carbon.

Hettiarachchy said the carbon already in use has to go out of service for coconut-based carbon to be used and regain market share.

He expects this to happen towards the end of 2008 as carbon can be usually re-used three times in purification processes.

US trade law allows US industries to petition the US International Trade Commission and the Department of Commerce to conduct antidumping and countervailing duty (subsidy) investigations and seek relief from unfairly priced (dumped) and subsidized imports.

The US decides that dumping has happened when a foreign producer sells a product in the United States at a price that is below that producer's home market price, or a price that is lower than its cost of production.

Subsidizing occurs when a foreign government provides financial assistance to benefit the production, manufacture, or export of a good.

One of the US petitioners was Calgon Carbon Corporation, a Haycarb customer, with which it has an agreement to manufacture and supply certain grades of coconut shell-based activated carbons.

25 February 2008 19:05:27

Source: www.lankabusinessonline.com