The European Commission is implementing a regulation imposing a provisional anti-dumping duty on imports of lysine originating from the People’s Republic of China.
On May 23, 2024, the European Commission initiated an anti-dumping investigation following a complaint from EU producer Metex Noovistago. The investigation period was from January to December 2023.
During this period, the European Union imported 329,052 tonnes (70-79% market share) from China during that period, an increase compared to the 285,083 tonnes (59-69% market share) imported in 2022 (Source: Eurostat - lysine HCl, liquid lysine, Eurolysine - lysine sulphate). The European Union concluded that while the EU market was contracting, there was a major increase in the volume of imports originating in China during the period considered at low price.
“The low prices of dumped Chinese imports prevented the EU industry from increasing its prices to sustainable levels, resulting in a situation of continuous and increasing loss-making. Moreover, the union industry also lost significant market share to Chinese imports and due to the severe loss of sales, it even had to temporarily halt production in 2023,” the report says. The Commission established thus a causal link between the dumped imports from China and the injury suffered by the union industry.
Anti-dumping duties will range from 58.3% to 84.8% based on the CIF price. Notably, Meihua Group faces an 84.8% duty, Fufeng Group and CJ Liaoning 71.6%, Eppen Group 58.3%, and all other lysine producers and suppliers an 84.8% duty.
No sufficient alternative supplies
The EU premix and compound feed manufacturers expressed deep concern about the extremely high level of the provisional EU import tariffs for lysine.
"Currently, the EU depends on China for 60% of its lysine demand (total EU usage of approximately 500,000 tons equivalent lysine hydrochloride). There are no sufficient alternative supplies from EU production or other third countries that can replace imports from China. Therefore, this measure may lead to significant adverse economic consequences for the EU feed and livestock sector,” FEFAC president, Pedro Cordero, said.
“FEFAC wants to alert the EU Commission that the provisional import duties may disrupt lysine imports and will have an inflating impact on quotations of lysine on the EU market creating market distortions with third countries. FEFAC therefore calls on the EU commission to provide effective and targeted financial compensation for EU livestock farmers, who will see their competitiveness further weakened, particularly for poultry and pig production,” Cordero said.
“FEFAC in no way condones dumping practices distorting fair competition. FEFAC is also supportive of any targeted EC policy measures that could help strengthen the competitiveness of EU feed additive producers, which could reduce strategic dependence on China for critical feed additives. FEFAC, therefore, urges the EU to recognize essential amino acids and vitamins as ‘critical materials’. The EU must initiate a reflection on how to stimulate significant investments, via adaptation of current EU policies in order to increase production and diversification of the EU supply chain for critical feed additives,” Cordero concluded.
