High Prices Of Raw Materials Shortage Of Citric Acid Manufacturers Encounter A Critical Situation -

As the climate impact of biofuels on the increasingly fierce competition for crops

such as highlighting the role of external pressure, has led to the production of citric acid in raw material shortages, high prices, so citric acid producers facing tough situation. The United States and Europe citric acid manufacturer in the thin market returns will increasingly feel the chill. Some manufacturers in the case of being squeezed out of the market entirely

Recently, the United States three major ingredients company?? Archer Daniels Midland (ADM) company, Cargill (Cargill) companies and Tate & Lyle U.S. companies are accused of citric acid manufacturers in Canada and China of not price equal to the U.S. market dumping citric acid, and thus caused damage to the U.S. citric acid industry.

4 14, the three companies to the U.S. government submitted a petition asking the Government to establish in the domestic citric acid market environment of fair competition. Their U.S. Department of Commerce and the U.S. International Trade Commission (USITC) complained that the citric acid from Canada and China and certain citrate salts are sold at unfair prices.

Three companies called on these imports from China imposed anti-dumping and countervailing duties on similar products from Canada to take anti-dumping measures. Although the three companies either did not specify their alleged dumping in Canada or China's participation in any enterprise, nor did they think that is fair sales price, but they urge the Government to impose anti-dumping duties on raw materials from Canada impose a 65% tariffs levied on products from China 188% tariff.

Three companies allegations at this stage, time when the price of citric acid products are also on the profits of U.S. manufacturers the time pressure. At present, due to climate impacts, and bio-fuel industry more and more intense competition for crops such as highlighting the role of external pressures, has lead to the production of citric acid in raw material shortages, high prices, so citric acid producers facing tough situation.

Expected to petition the U.S. Department of Commerce will review and investigation within 20 days. The USITC will use 45 days of citric acid from Canada and China, to evaluate the potential threat. According to USITC decision, the U.S. Department of Commerce may be in the 2 to 5 months of the time it announced the initial steps taken.

As citric acid from low-cost Asian competition in product mix increased pressure, as well as rising raw material prices, the United States and Europe in the profits of manufacturers of citric acid markets gradually thin felt more increasingly strong chill. Some manufacturers in the case of being squeezed out of the market entirely.

Last year, Tate & Lyle company closed its citric acid plant in the United Kingdom. In 2006, Solaris company closed its factory in India, while ADM in the previous year, the company closed its factory in Ireland. Have closed in recent years, manufacturers of citric acid also Aktiva company's factory in the Czech Republic, and Tate & Lyle a company based in Mexico QuimixaMexama factory.

2007, the European Commission launched a survey to confirm whether the Chinese citric acid supplier of citric acid dumping in the European market, because the outside world were allegations that this dumping is damaging the European citric acid industry.

Field of organic acids present in the citric acid dominant. Citric acid is widely used as expected by 2009 this market will be strong sales growth, market size will more than two billion U.S. dollars.

by: gaga

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