The Department of Trade and Industry (DTI) of the Philippines in September 2020 started a preliminary safeguards investigation on imports of HDPE and LLDPE pellets and granules from Malaysia, Thailand, Singapore, Saudi Arabia, Japan, the US, and the UAE. The probe includes the period of 2015 to 2019 and covers products under the ASEAN Harmonized Tariff Nomenclature (AHTN) 3901.20.00 for HDPE and 3901.10.12, 3901.10.92, 3901.40.00 and 3901.90.90 for LLDPE.
The investigation followed a complaint submitted by JG Summit Petrochemical Corporation (JGSPC), the Philippines’ only integrated producer of polyethylene (PE) and polypropylene (PP) resins. According to the company, substantial increase in imports of HDPE and LLDPE has hurt the domestic industry over the covered period. Market participants said that importers are now reluctant to take PE cargoes originating from outside Southeast Asia amid the ongoing investigation.
According to a DTI report, the Philippines imported 29,692 tons of HDPE in 2015. HDPE imports rose by 53,860 tons (181%) from 2015. The imports increased by 22,856MT (26%) in 2019, compared to 2018. Meanwhile, LLDPE imports 80,000 tons in 2015 to 121,000 tons in 2019, with the largest increase taking place in 2018 when the imports rose by 38%.
Official customs data shows that Thailand, Malaysia, Singapore, and Saudi Arabia were the largest HDPE suppliers to the Philippines during 2015 to 2019. These countries accounted for 89.1% of the country’s overall HDPE imports in 2019. Meanwhile, Singapore, Thailand, Qatar, Saudi Arabia, the US, Malaysia, South Korea, and Canada were the Philippines’ primary LLDPE suppliers, contributing to 96.4% of the country’s total LLDPE imports last year.
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Published on October 22, 2020 2:38 PM (GMT+8)Last Updated on October 22, 2020 2:38 PM (GMT+8)
