In response to media reports on views of market analysts, the leading maker of paper for electrolytic capacitor in China suspended trading of its shares Thursday, saying it will make a public announcement with regard to this before trading of its shares is resumed.

A media report says globally only two companies, namely NKK of Japan and Kan, have the capacity of serial production of paper for electrolytic capacitor, and NKK now has an over 50 percent market share globally and in China.

After processing trade of such paper is banned, the original market share of NKK in China may be redistributed to give Kan a relative monopoly position on the domestic market, analysts say, adding the company may see related benefits within this year.

Kan was in the red in 2007. On behalf of the domestic electrolytic capacitor paper industry, it filed an anti-dumping investigation application with the Ministry of Commerce in March 2006, and won it with a ruling of the ministry to impose anti-dumping duty on imported electrolytic capacity paper originated from Japan for a period of five years from April 18, 2007.

The anti-dumping tax did not have material effect on imports as electrolytic capacitor paper imported from Japan has largely been made in the form of processing trade.

(XIC)

Friday, April 11, 2008; Posted: 01:33 AM

Source: www.tradingmarkets.com