Commerce Probes China's Cheap Chemical Flood: Duties on the Horizon?
Published Date: 3/11/2025
Notice
Summary
The U.S. Department of Commerce is starting an investigation to see if China is selling methylene diphenyl diisocyanate (MDI) at unfairly low prices in the U.S. This affects companies like BASF and Dow, who asked for this review to protect fair trade. If unfair pricing is found, extra duties could be added soon, which might change prices and imports starting March 2025.
Analyzed Economic Effects
3 provisions identified: 1 benefits, 1 costs, 1 mixed.
Antidumping Probe into MDI Imports
Commerce initiated a less-than-fair-value (antidumping) investigation of methylene diphenyl diisocyanate (MDI) imports from the People’s Republic of China effective March 4, 2025. The petition’s estimated dumping margins for MDI from China range from 305.81 percent to 511.75 percent, and Commerce will issue its preliminary determination no later than 140 days after initiation (i.e., by July 22, 2025).
ITC 45-Day Injury Decision
The U.S. International Trade Commission (ITC) will make a preliminary injury determination within 45 days after the petition was filed (the petition was filed February 12, 2025, so the ITC decision will be within 45 days after that date). A negative ITC determination will terminate the antidumping investigation; a positive ITC determination allows the investigation to continue.
Product Scope Exclusions for Some MDI Forms
The investigation’s scope explicitly excludes mixtures where the combined MDI component is less than 40 percent of the total weight, and it excludes partially reacted MDI when its NCO content is less than 10 weight percent. Products meeting those thresholds are not covered by this investigation’s scope.
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