The U.S. government positioned with surrogates of protectionist trade agenda of President Donald Trump delivered its first antidumping attack on South Korean imports, affirming dumping rates of 4 percent to 6 percent on Korean dioctyl terephthalate (DOTP), additives used in plastics and rubbers, after a preliminary review.

The U.S Department of Commerce last Friday assigned preliminary dumping rates of 5.75 percent on DOTPs manufactured by LG Chem and 3.96 percent duties on Aekyung Chemical Co. after its investigation discovered them of selling their products in the U.S. under fair value of such margin. It imposed preliminary anti-dumping tariffs of 4.47 percent on imports from all Korean DOTP manufacturers.



The U.S commerce department customarily makes the final determination after 75 to 135 days from its preliminary decision, but it requires importers subject to anti-dumping tariffs have cash equivalent to the duties amount deposited at U.S authorities immediately upon the preliminary decision.

DOTPs are chemicals that help to easily shape plastics. Korean DOTP makers led by LG Chem, Aekyung Chemical, and Hanwha Chemical Corp. have shipped 25,800 tons of DOTPs worth $31.22 million to the U.S. annually. As of 2015, the DOTPs by Korean makers account a combined 55.9 percent share of the U.S. plasticizer market.



In June 2016, U.S-based chemicals maker Eastman Chemical Company filed a petition against Korean DOTP makers, demanding antidumping duties of between 23.7 percent and 47.86 percent.

LG Chem said it plans to “actively respond” to the claims before the U.S authorities make final determination and at the same time will consider diversifying export lines away from the U.S.

The U.S. International Trade Commission makes separate determination by July following the final ruling from the Commerce Department.



As of 11:30 a.m. on Tuesday, shares of LG Chem fell 1.3 percent to 266,500 won ($228.09) in Seoul trading.

By Kim Jung-hwan

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