EU Imposes Anti-Dumping Investigation on Chinese Adipic Acid

On March 14, 2025, the European Commission announced the launch of an anti-dumping investigation into adipic acid originating from China. The investigation follows a complaint filed on January 28, 2025, by Lanxess Deutschland GmbH and Radici Chimica S.p.A. The product under investigation falls under the EU CN code ex 2917 12 00 (TARIC code 2917 12 00 10). The investigation covers the dumping period from January 1, 2024, to December 31, 2024, while the damage assessment period spans from January 1, 2021, to the end of the dumping investigation period. A preliminary ruling is expected within seven months, with a final decision due within eight months.

Adipic acid is widely used in polyurethane production and nylon 66 and serves as a raw material for 1,6-hexanediol and powder coatings. It plays a crucial role in polyester polyol manufacturing, used in foams, coatings, adhesives, and elastomers.

1. By the end of 2024, China's adipic acid production capacity reached 4.1 million tons, with a compound annual growth rate (CAGR) of 12.72%.

2. The annual production hit 2.5 million tons, with a CAGR of 12.51%.

3. This growth has been driven by China's chemical industry expansion and strong market demand, prompting major investments in new and expanded production facilities.

4. China now accounts for nearly 70% of global adipic acid capacity, forming an oligopolistic market led by Huafon Chongqing, Shenma Group, and Hualu Hengsheng.

With rising production and intense competition, China has solidified its position as a leading producer and exporter of adipic acid. In 2024, China's adipic acid exports totaled 402,000 tons, with key markets including Turkey, India, Singapore, Taiwan, Italy, South Korea, the Netherlands, Pakistan, Israel, and the UAE.

1. The Netherlands is a major hub for Chinese adipic acid exports due to its strategic location and advanced logistics. Some of these imports remain in the Dutch market, while others are redistributed across EU countries.

2. Germany and Italy are also key EU importers of Chinese adipic acid.

China has faced multiple anti-dumping investigations across various industries, including steel, chemicals, solar panels, ceramics, aluminum, textiles, electronics, and machinery. In the chemical sector, products such as adipic acid, polyester staple fiber, and aluminum hydroxide have been frequent targets. The EU argues that low-cost Chinese imports undercut local manufacturers, prompting trade protection measures.

This latest move underscores growing trade tensions between the EU and China, as the bloc continues to shield its domestic industries from perceived unfair competition.