Xanthan gum dumping case nears injury determination

by Jeff Gelski
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WASHINGTON — The U.S. Department of Commerce, after completing its investigations, on May 29 determined that xanthan gum from Austria and China was dumped in the United States and then calculated anti-dumping cash deposit rates. Dumping occurs when a foreign company sells a product in the United States at less than fair value. CP Kelco, Atlanta, filed a petition for the investigations on June 5, 2012.

The Department of Commerce will instruct U.S. Customs and Border Protection to continue to collect cash deposits equal to the applicable weighted-average dumping margins. The U.S. International Trade Commission is scheduled to make a final injury determination on or before July 12 of this year.

“We want to thank officials of the U.S.D.O.C. and their staff for their diligent work, as this announcement is positive news for the domestic xanthan gum industry,” said E. Charles Bowman, vice-president of marketing for CP Kelco.

Xanthan gums function as hydrophilic colloids to thicken and stabilize emulsions, foams and suspensions, according to CP Kelco, which offers the Keltrol xanthan gum brand for food and personal care applications. Food applications include salad dressings and whipped foams. Xanthan gum also has been used in gluten-free baked foods.

In 2012, imports of xanthan gum from Austria were valued at an estimated $30.5 million and imports of xanthan gum from China were valued at an estimated $82.4 million.

In the Austrian investigation, mandatory respondent Jungbunzlauer Austria received a final dumping margin of 29.98%, as did all other producers/exporters from Austria.

“Jungbunzlauer is very disappointed with the result, which is based, in large part, on a technicality that has nothing to do with the prices at which Jungbunzlauer sells xanthan gum in the United States,” the company said in June 3 statement. “Nevertheless, Jungbunzlauer is very confident that if an anti-dumping order is issued, the U.S. Department of Commerce will recalculate a reduced dumping margin during future proceedings.”

In the China investigation, mandatory respondents Neimenggu Fufeng Biotechnologies Co., Ltd. (also known as Inner Mongolia Fufeng Biotechnologies Co. Ltd.) and Deosen Biochemical Ltd. received final dumping margins of 15.09% and 128.32%, respectively. Four other exporters qualified for a separate rate of 71.71%. All other producers/exports from China received the China-wide final dumping margin of 154.07%.
According to CP Kelco, the margin rates reflect the extent to which Chinese and Austrian xanthan gum producers priced below fair market value in the United States.

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