U.S. Government to Levy Higher Duties on Activated Carbon from China
A higher duty level on activated carbon from China will have a ripple effect that could cause the cost of many common U.S. products to increase.
Oceanside, CA (PRWEB) September 27, 2006 –- In October 2006, the U.S. government will legislate substantially higher duty levels on certain steam activated carbon imported from China. The International Trade Commission and Department of Commerce are reviewing the case right now. It is unclear whether there will be one overall duty fee or if there will be separate duty fees according to the specific Chinese manufacturing facility.
Activated carbon is a unique adsorbent product used in hundreds of industrial, municipal and commercial applications such as water filters, respirators, air filters, and drinking water. The current duty on activated carbon from China is 4.8%. If the duties were raised 20%, the market might be tolerant, but a duty of 100% would cause imports to be greatly curtailed, as they would not be competitive with domestic activated carbon sources.
“The activated carbon market is somewhat in limbo pending the scheduled announcement next month by the U.S. Government of the new duty level for activated carbon imported from China. A higher duty level fostered by the recent anti-dumping petition filed by two domestic activated carbon producers will mean that many filter products and bulk activated carbon purchased by municipalities for water treatment and odor control will cost significantly more and higher costs will lead to higher prices paid by consumers for many products and potable water,” said Ken Schaeffer, president of Carbon Resources.
In 2005, 85 million pounds of activated carbon was imported into the U.S. from China. This represented about half of the total activated carbon imports. The two largest domestic activated carbon manufacturers, Calgon and Norit, have stated that they could not replace the Chinese imports with U.S. production capabilities, thus creating a shortage of activated carbon products in the U.S.
Activated carbon products as an industry would generally experience a price escalation if Chinese carbons were eliminated from the scene by a high duty level. Domestic manufacturers could raise prices in many markets and overall the carbon market would shrink. Some coconut shell activated carbon manufacturers would also investigate feasibility of making certain types and grades of coal base carbon.
A very high duty of 100% or more would effectively stop most imports of activated carbon from China and probably result in renewed interest in by other companies to start manufacturing coal base activated carbon in the U.S. Other countries with coal, such as Canada and Mexico, would look at making coal base carbon and importing it to the U.S. if Chinese carbon was not price competitive in the U.S.
“I attended the AWWA, the largest Drinking Water Conference in the country and I attended the WQA, the largest point of use water treatment conference this year and I was amazed that about half of the attendees I talked to did not know that the anti-dumping petition on activated carbon from China was in progress. Many buyers of activated carbon products are in for a price shock if a new higher duty is authorized,” said Ken Schaeffer, president of Carbon Resources.
About Carbon Resources:
Carbon Resources takes pride in supporting our customers with a quality product that is backed by technical support and individualized customer service. The Carbon Resources Management Team has over 70 years of experience in the activated carbon industry. Our Sabre series® activated carbon products are the most diverse line of activated carbon products on the market.
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