ICL-IP America files anti-dumping petition against China on alkyl phosphate esters

ICL-IP America, a leading producer of specialty phosphate esters, has filed a petition with the U.S. Department of Commerce and the U.S. International Trade Commission (ITC), alleging that imports of certain alkyl phosphate esters from China are being unfairly dumped in the United States market. The petition, which was filed on April 23, seeks the imposition of anti-dumping duties on these imports to level the playing field for domestic producers.

Alkyl phosphate esters are versatile chemical compounds widely used as lubricant additives, particularly as anti-wear and extreme pressure (EP) additives in industrial and automotive lubricants. These additives form protective films on metal surfaces under high stress and temperature conditions, significantly reducing wear and friction.

In addition to their primary function as wear protection agents, alkyl phosphate esters offer several other benefits. They possess good thermal and oxidative stability, making them suitable for applications requiring high-temperature performance. Furthermore, they can act as corrosion inhibitors and fire-resistant additives, rendering them valuable in hydraulic fluids, gear oils, and turbine oils where severe operating conditions are encountered.

ICL-IP America’s allegations

ICL-IP America, a subsidiary of the Israeli company ICL Group, has alleged that certain alkyl phosphate esters from China are being sold in the U.S. market at unfairly low prices, a practice known as dumping. The company claims that these dumped imports have caused material injury to the domestic industry, negatively impacting its sales, market share, and profitability.

The petition claims that Chinese producers/exporters are dumping these products in the U.S. market at margins ranging from 45.1% to 68.4%. It also alleges that Chinese producers are benefiting from countervailable subsidies, giving them an unfair advantage.

The scope of the petition covers alkyl phosphate esters based exclusively on side chains with two or three carbon atoms, with a phosphorus content of at least 6.5% by weight and a viscosity between 1 and 2000 mPa.s at 20-25°C. This includes products like Tris (2-chloroisopropyl) phosphate (TCPP), Tris (1,3-dichloroisopropyl) phosphate (TDCP), and Triethyl Phosphate (TEP).

By filing this petition, ICL-IP America seeks to initiate an investigation by the U.S. Department of Commerce and the U.S. International Trade Commission. If the allegations are substantiated, anti-dumping duties could be imposed on the imported alkyl phosphate esters from China, effectively raising their prices to a fair market level.

Significance and next steps

The anti-dumping petition filed by ICL-IP America highlights the ongoing trade tensions between the United States and China, particularly in the chemical and manufacturing sectors. If successful, the imposition of anti-dumping duties could have a significant impact on the pricing and competitiveness of alkyl phosphate esters in the U.S. market, potentially benefiting domestic producers like ICL-IP America.

The U.S. Department of Commerce and the U.S. International Trade Commission will now initiate their respective investigations into the allegations made by ICL-IP America. These investigations typically involve gathering data, holding hearings, and analysing evidence from all parties involved before reaching a final determination.

The key upcoming dates are May 13, 2024 for the ITC conference and Commerce Department’s initiation decision, followed by the preliminary determinations in July and September 2024.