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ITC Determines Chinese Polyester Staple Fiber Imports Hurt US Industry

By a unanimous vote, the US International Trade Commission (ITC) has determined that imports of 3-denier and larger polyester staple fiber (PSF) from China are materially harmful to US producers of that fiber. As a result, the US Department of Commerce (DOC) which last December found that all but one Chinese producer were unfairly underselling the fiber at 3.47- to 44.3-percent dumping margins to gain market share has issued an anti-dumping duty order requiring cash deposits comparable to those margins on imports of such fiber, effective immediately.

According to a press release issued by US polyester staple fiber producers DAK Americas LLC, Charlotte; Nan Ya Plastics Corp., Lake City, S.C.; and Wellman Inc., Shrewsbury, N.J. petitioners in the case, which was filed in June 2006 the US industry is considering appealing the finding for the Chinese fiber producer not included in the DOCs anti-dumping determination, as well as some of the dumping margins for those producers that were included.

The PSF covered by the petition is used as stuffing in such articles as bedding, furniture, mattresses, ski jackets and sleeping bags.

"We are pleased with the commissions final vote in this investigation," said Paul Rosenthal, managing partner of the Washington office of Kelley Drye Collier Shannon and lead counsel for the petitioners. "Scores of Chinese producers, no doubt with the Chinese governments encouragement, targeted the United States for exports of PSF beginning just a few years ago. Todays decision will help restore fair pricing to the marketplace."

According to the ITC, there were eight US companies in 2006 producing 573 million pounds of PSF and employing 968 production and related workers. These producers shipped 500.2 million pounds of fiber, and US consumption amounted to an estimated 1,066.9 million pounds. US imports of PSF totaled 202.3 million pounds worth $112.3 million.

May 22, 2007