Sasol to stop acetone exports to US after 414.92% anti-dumping duty

JOHANNESBURG – Sasol said its South African unit would no longer export acetone to the US after the US International Trade Commission (USITC) last month imposed a five-year 414.92 percent anti-dumping duty for the imports of acetone into the US domestic market.

The hefty import duty was the latest blow for Sasol, which is grappling with a constrained balance sheet and whose share price went into a tailspin this month as a result of coronavirus uncertainty and the subsequent fallout in the oil markets.

The USITC reported in a statement that the US industry was materially injured by acetone imports from South Africa, Belgium and Korea, adding that the country’s Department of Commerce (DOC) had determined they were sold in the US at less than fair value.

Sasol, which is Africa’s only producer of acetone, said the US commerce department had initially imposed a duty band between 12.83 and 410.22percent, but due to it withdrawing its defence, the DOC selected to choose the higher end of the duty band plus a penalty, resulting in the 414.92percent import duty.

“Considering that the duty will be enforceable for such an extended period of time and considering its magnitude, the US acetone market for Sasol is closed indefinitely. Sasol will regrettably no longer export acetone to the US,” said the group last week, adding that although Sasol withdrew its defence, this was no admission of any alleged dumping.