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Candle exports may be snuffed out in the US

http://www.qingdaonews.com 2005-11-25 15:21:40

¡¡¡¡BEIJING, Nov. 25 -- Chinese candle makers will have to halt exports to the United States next year if a decision expected in January puts candles made from palm oil in the same category as petroleum wax candles, which were slapped with a 108.3 percent anti-dumping tariff last December
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¡¡¡¡More than 10,000 Chinese candle makers and 30,000 affiliated suppliers of fragrances, candle stands and cotton wicks would be affected by an adverse ruling, putting in jeopardy hundreds of thousands of jobs, industry sources said yesterday.

¡¡¡¡The United States started a dumping investigation into Chinese palm wax candles in March, claiming the products are only minor alterations to the petroleum wax candles that are now subject to punitive duties.

¡¡¡¡If the January ruling goes against it, the blow to the Chinese candle industry would be huge, as 90 percent of the country's candle exports are made of palm wax, said officials at the China Chamber of Commerce for Import and Export of Foodstuffs, Native Products and Animal By-products.

¡¡¡¡China is the world's biggest candle supplier.

¡¡¡¡Last year, the United States bought US$139 million worth of Chinese candles, accounting for 60 percent of total Chinese exports.

¡¡¡¡The European Union is the second-largest market, purchasing almost 40 percent of Chinese candle shipments.

¡¡¡¡So far only seven Chinese candle makers have filed complaints against the possible charge, including Qingdao-based Kingking A.C. Co Ltd, China's largest candle exporter, and Shanghai Autumn Light Enterprise Co Ltd, which exported 300 million yuan (US$37.1 million) worth of candles to the United States last year.

¡¡¡¡No candle company could continue exports to the US if the new tariffs are imposed, said Yu Qingrong, general manager of Shanghai-based Autumn Light.

¡¡¡¡Shanghai Autumn Light said US clients have been reluctant to place an order since March and the company's orders have been shrinking by more than 60 percent from last year.

¡¡¡¡Yu said he displayed his products at a Frankfurt gift fair several months ago, trying to tap the EU market.

¡¡¡¡"I found I have to mark down the price to US$3.9 for a type of candle for the EU market, compared with US$4.5 for the US market as competition gets tough," he said. "It could be a disaster for Chinese candle makers."

¡¡¡¡(Source: Shanghai Daily)

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