Commerce Moves Closer to Xanthan Gum Antidumping Order

By Robby Gardner, Associate Editor

The U.S. Department of Commerce (USDOC) has made final determinations for Austrian and Chinese companies that are underpricing xanthan gum to the U.S. market. Dumping margins-the rate at which the companies are selling xanthan gum below its fair value- are estimated at 29.98% and 15.09–154.07% for Austrian and Chinese producers, respectively.

Xanthan gum is a common thickening agent used in foods and beverages. Investigations into U.S. xanthan gum imports started in 2012, when gum and hydrocolloid supplier CP Kelco (Atlanta, CA) filed for antidumping litigation based on evidence of unfair xanthan gum prices. The USDOC has since explored and confirmed the margin rates above, and they could play into a final decision to impose higher rates on xanthan gum imports from the offending parties (an antidumping order). Ultimately, that decision falls on the U.S. International Trade Commission, which will make its final determination on or before July 12, 2013.

In 2012, China and Austria combined for more than $112 million dollars in xanthan gum sales to the United States. Xanthan products affected by the decision include, but are not limited to, dry powders, unground fiber, slurries, and xanthan gum blends in which the resulting mix contains 15% or more xanthan by dry weight.