CP Kelco and Jungbunzlauer welcome the determination

Xanthan gum: ITC/DOC find Chinese suppliers guilty of dumping


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Xanthan gum: ITC/DOC find Chinese suppliers guilty of dumping
Imports of xanthan gum from China have been hit with anti-dumping duties following an investigation by the US International Trade Commission (USITC) and the US Department of Commerce.

The anti-dumping case – brought by CP Kelco in December 2012 – found that Chinese producers and exporters sold xanthan gum in the US for 15-154% below fair market value. Imports of the ingredient from China were estimated at $82.4 million in 2012, according to the Commerce Department​.

Positive news for the domestic xanthan gum industry

E. Charles Bowman, VP of Marketing for CP Kelco, welcomed the decision and thanked officials of the USDOC and their staff for their work. “This announcement is positive news for the domestic xanthan gum industry,” ​he said.

“CP Kelco increased capacity at our San Diego, California facility in the fourth quarter of 2012, and has current debottlenecking projects in place to further meet market demand for U.S. consumers. “


According to the ITC/DOC decision, Deoson Biochemical Ltd. received a final dumping margin of 128%, while Neimenggu Fufeng Biotechnologies Co., Ltd. (also known as Inner Mongolia Fufeng Biotechnologies Co., Ltd.) received a margin of 15%.

The margin rates reflect the extent to which the Chinese xanthan gum producers priced below fair market value in the United States, and the differences between the China duty rates are said to be directly tied to value and quality type of the raw materials used by respondents to produce xanthan gum. 

On the other hand, the ITC voted 6-0 against imposing anti-dumping duties on Jungbunzlauer, finding that the Austrian supplier did not cause material injury or the threat of material injury, despite underselling by 30% below fair market value, and should not be part of any measures. 

Speaking with FoodNavigator-USA, Tom Knutzen, CEO of Jungbunzlauer, welcomed the announcement, saying that the company views the decision as a confirmation that Jungbunzlauer conducts its business in a fair manner.

Had the ITC imposed duties, Jungbunzlauer would have been unable to keep prices stable, he said, but the decision allows the company to stand by its commitments to supply the US market.

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