U.S. Department of Commerce Finds Low-Value Sales of MDI from China
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The U.S. Department of Commerce has made a final decision about a chemical called methylene diphenyl diisocyanate (MDI) from China. They found that it is likely being sold in the United States for less than it is worth. This decision covers sales between July 1, 2024, and December 31, 2024. The decision was announced on April 13, 2026.
The Department of Commerce checked sales records from China to see if the prices were fair. They found that the prices were not fair and were lower than the usual value. This is called “less than fair value” (LTFV) pricing.
Earlier, the Department had found some early results and shared them with the public. They allowed people to give their comments on the findings but did not make any changes based on those comments.
The scope of this investigation included looking at the specific type of MDI from China to determine if it was being sold at lower prices. No arguments were made that changed their initial expectations.
Verification showed that the main company from China, involved in these sales, did not meet the necessary requirements for a separate rate. As a result, this company is grouped with a larger China-wide entity that does not get special treatment. The Department of Commerce decided not to verify the company’s records because they were not helping enough in the investigation.
Certain companies were given separate rates because they met all the necessary conditions. These companies include Covestro Polymers (China) Co., Ltd. and Shandong Mingko Co., Ltd. They both received a weighted-average dumping margin of 85.11 percent.
For companies that did not cooperate or did not qualify for separate rates, like the China-wide entity, the dumping margin is set at 159.04 percent. This means that their sales are found to be significantly below fair value.
The International Trade Commission (ITC) will now decide if the low prices of MDI from China hurt U.S. companies. If they agree, the U.S. will put taxes on MDI from China to make import prices fairer. This is called an antidumping duty order. If the ITC does not think U.S. companies are hurt, there will be no extra taxes, and the case will be closed.
The Department of Commerce will continue to keep a close watch on sales records and prices for fairness in international trade. They will work to make sure U.S. businesses are not harmed by unfair pricing from other countries.
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