China has terminated the anti-dumping investigation against US DDGS exports to China, which has been ongoing since December 2010.
In the announcement by the Chinese Ministry of Commerce stated that the applicants in the case withdrew their petition on May 10, 2012, which resulted in the Ministry terminating the investigation in accordance with China’s anti-dumping regulations. No anti-dumping tariffs will be imposed.
The ministry launched the antidumping probe in December 2010 at the request of major domestic producers and last year extended the investigation for six months until June 28 this year.
Imports of US DDGS - comprising protein, fibre and oils from corn that has been processed into ethanol - will benefit Chinese feedmills, whose profit margins are under pressure due to high corn prices, analysts said.
Cofco Biochemical (Anhui) Co., Jilin Fuel Alcohol Co., Meihekou Fukang Alcohol Co. and Jilin New Tianlong Wine Industry Co. on May 10 asked the ministry to end the probe, and the ministry decided to accede to the request, according to a statement on its website.
This completed the circle for the investigation, which the four companies requested to be initiated in 2010.
Demand from Chinese feedmills for US DDGS is strong as it costs less that feed grains. Exporters in the US also see the commodity as a significant new trade opportunity in China.
The semi-official China Feed Industry Association urged the commerce ministry to suspend the antidumping investigation in 2011, according to the statement, which added that Archer Daniels Midland Co. (ADM) also reported to the ministry that China's relevant industries didn't suffer substantial damage from the imports of US products.
In 2011, China's imports of DDGS totalled 1.69 million tonnes, down 47% from 2010, customs data showed, as buyers feared Beijing might impose duties on imports.