Antidumping and Countervailing Petitions Target Melamine Imports from 6 Countries

On February 14th, Cornerstone Chemical Company, acting as the Petitioner, lodged antidumping duty (AD) and countervailing duty (CVD) petitions concerning melamine from Germany, India, Japan, the Netherlands, Qatar, and Trinidad and Tobago. These petitions allege that imports of melamine from the mentioned countries are being sold in the United States at prices below fair value, causing material harm and posing further threats to the domestic industry.

Furthermore, the Petitioner contends that melamine imports from Germany, India, Qatar, and Trinidad and Tobago benefit from countervailable subsidies, exacerbating the detrimental impact on the domestic industry. The imposition of AD/CVD duties hinges upon determinations made by the US Department of Commerce (DOC) regarding the existence of dumping and subsidization, as well as findings by the US International Trade Commission (ITC) regarding the occurrence of "material injury" or its imminent threat resulting from these practices.

Should the investigations yield affirmative results, importers of melamine from the specified countries will be subject to potential AD/CVD duties. Described as a fine, white crystalline powder, melamine serves as a primary ingredient in the production of amino resins, extensively utilized in various applications such as surface coatings, laminates, molding compounds, paper treatment, adhesives, and textile treatment across industries like automotive, appliances, dinnerware, furniture, fabric, and wood paneling.

Melamine, chemically denoted as C3H6N6 or 2,4,6-triamino-s-triazine, typically comprises a minimum of 99.8% melamine by weight, boasting a molecular weight of 126.13, a specific density of 1.573 g/cc (depending on particle size), and a melting point approximately at 354°C, with sublimation. Predominantly utilized in the production of melamine-formaldehyde (MF) resins, the majority of melamine in the United States contributes to the manufacture of laminates, surface coatings, adhesives, molding compounds, paper treatment, and various other applications.

The production process of melamine entails the thermal decomposition of urea, accomplished through either a low-pressure catalytic process or a high-pressure non-catalytic process. This process involves the application of heat and pressure to induce a reaction between urea and ammonia, resulting in the production of melamine, further purified and processed to meet specific particle size distribution requirements.

The merchandise subject to these investigations, denoted by Chemical Abstracts Service (CAS) registry number 108-78-01 and molecular formula C3H6N6, encompasses melamine in its various forms, irrespective of purity, particle size, or physical state. Comprising crystalline powder or granules, melamine serves as a fundamental component in the manufacture of melamine formaldehyde resins, with all variants of melamine falling within the scope of these orders.

The filing of these AD and CVD petitions by Cornerstone Chemical Company underscores concerns regarding unfair trade practices in the melamine market, with the potential imposition of duties serving to mitigate the adverse effects on the domestic industry while promoting fair competition and adherence to established trade regulations.