When and why the anti-dumping case was established
The case was applied by Ajinomoto Europe in May,2015. As it known to all, Ajinomoto is a good supplier of Activa TG enzyme, MSG, Aspartame and other related products, the header office is located in Japan.
It has an Aspartame factory in France, the equipment is advanced and equipped with around 120 workers. But it closed in 2014 due to the high comepetion from China suppliers. The price levels between China aspartame and Ajinomoto has a big gap. For example, if China aspartame price is $11.0/kg, Ajinomoto’s $16.5/kg. You can estimate that some market is in hand of China suppliers, especially some big end users, like Coca-Cola, Pepsico, Mondelez and so on. So that’s one reason that the anti-dumping case was established.
Why China’s price is lower much
China is a fast grow country, and with little restriction in environment control many chemical companies sprout out, including Aspartame business. There are around six aspartame manufacturers in China, Yamei is a professional one since 1998.
The main raw materials manufacturing Aspartame is L-Phenylalanine and L-Aspartic Acid. With corn and oil price going down, these two materials price is going down accordingly.
In the market aspartame mainly have two type, powder and granular. The differance that make a buyer to choose is the mesh size and solubility. Mesh size no difference with Ajinomoto, but the solubility of China aspartame is very slow than Ajinomoto. China aspartame need 10 minutes to dissolve plus the stirring while Ajinomoto’s need only 1 minutes to dissolve with stirring. That’s the main differance make China price lower much.
How suppliers and buyers react to the anti-dumping result?
China suppliers would ask CCPIT for help, to negotiate with EU investigators. And aslo prepare to fight the case again. China’s export is around 3,000 MT per year, so if China lose EU market, which market should this 3,000 MT goes? Definitely this volume will go to other market making the competition more fierce as a result of price goes down all the way…
For EU buyers, they almost cannot accept the result, that means they have to buy Ajinomoto aspartame, which makes their business profit decreases, or someone will give up aspartame business.
As for Ajinomoto, it is a good news to restart their factory.
May anti-dumping in USA?
Once the case established in last May, Ajinomoto sold its factory to Hyetsweet, a sweeteners distributor in Europe. It seems that Ajinomoto applied the case just want to sell its factory? Aspartame is a controversial product that some people always say it can cause cancer, so maybe Ajinomoto do not pay more attention on it, in addition to its dreasing price year by year.
But we heard that Ajinomoto intended to buy Nutrasweet USA plant, which was closed in last March. And Ajinomoto would also like to apply the anti-dumping against the China aspartame in USA.
Let us see if it is true and how it happens.
Further details of the anti-dumping please visit here:Europe anti-dumping duty on imports of aspartame