The European Union has preliminary news on the anti-dumping investigation of erythritol from China. The European Commission recently announced plans to impose provisional tariffs ranging from 51.8% to 294% on erythritol products originating in China.
According to information from San Yuan Biology (301206), this is not the final result yet. The formal ruling will be announced on July 20, and the actual market impact is still pending evaluation.
In a recent disclosure, the European Commission proposed imposing a provisional tariff of 51.8% on Jungbunzlauer, 105.6% on Dongxiao Biological Technology Co., Ltd., and 156.7% on major player San Yuan Biology for erythritol. Other companies face varying provisional tariffs ranging from 152.9% to 294%.
On July 1st, a journalist from mainland China posed as an investor and called Jungbunzlauer Securities. The staff acknowledged the European Commission’s announcement and perceived it as essentially the final outcome.
Previously, on November 21, 2023, the European Commission received a complaint from Jungbunzlauer, alleging price and cost disparities in Chinese erythritol products, leading to the initiation of an anti-dumping investigation on erythritol from China. This investigation involves multiple listed sugar substitute companies in China, such as San Yuan Biology and Jungbunzlauer (002286.SZ).
According to reports by mainland Chinese media outlet “Caixin,” a significant portion of Chinese-produced erythritol is intended for export.
San Yuan Biology’s foreign sales accounted for a high percentage of total revenue in 2023, reaching 76.8%. A previous announcement indicated that from October 1, 2022, to September 30, 2023, San Yuan Biology’s exports of the implicated products to the EU accounted for approximately 18.8% of the company’s operating income. The industry is also concerned about the potential new impacts on supply and demand in the sector following the EU’s imposition of high tariffs on Chinese erythritol.