European polyurethane (PU) foam makers association Europur said today that it would support an antidumping investigation into Chinese imports to Europe, as they threaten producers in the region.
Europur's call comes as European PU foam producers are concerned about the impact of rising Chinese imports on their industry's competitiveness. A combination of factors including weaker domestic demand in China and lower freight rates has boosted cheaper Chinese PU imports to Europe in recent months.
"We are not against trade […] but trade must be fair," Europur president Bart ten Brink told delegates at the association's annual conference in Spain. "We cannot have a set of rules for all of the European producers and none for [those outside]," he said, adding that Europe is failing to enforce a level playing field. Europur said it has done preparation work to support an antidumping investigation. But major mattress producers would have to press for it at a European level, Brink noted.
European Policy Centre Associate Director Georg Riekeles warned delegates against complacency. As European chemical capacity shuts down under pressure from low-cost Chinese competition, the country is strategically well-positioned to fill the supply gap, Riekeles suggested. Europe must strengthen its internal market, he warned. "No amount of subsidies will work, unless you have demand capacity [but] value chain integration in Europe has stalled in the last decade."
Chinese PU exports to Europe have risen since the start of this year, driven by weaker domestic demand in China, lower Asia to Europe freight rates and a weaker US dollar, which has made dollar-denominated Chinese volumes more competitive in Europe.
Chinese exporters are facing growing challenges in other markets including the US as a result of trade uncertainty and shifting tariff regimes. This has contributed to make stable markets such as Europe more attractive, and trade flows of finished goods — such as mattresses — are shifting from the US to other markets, including Europe.
China's April mattress exports were down by 11pc on the year at 2.35mn units. Shipments to the US fell by 45pc to 383,100, while exports towards Europe rose by 27.8pc in April, to 733,000.
The drop in mattress shipments from China has contributed to slow Chinese domestic demand for polyether polyols, a key input into PU foam, pushing exports up.
China exported 84,800t of polyether polyols to Europe in January-April this year, an increase of 30pc year on year. A further 93,400t were exported towards nearby Turkey in the first four months of the year.
Argus assessed flexible slabstock polyether polyols at €1,280-1,370/t del for domestic supply in May. Meanwhile imported polyols from China were at €1,100-1,150/t on a delivered basis in some European markets last month.
