On April 8, 2026, BASF Corporation formally petitioned the US Department of Commerce to initiate an anti-dumping investigation into Polytetramethylene Ether Glycol (PTMEG) imports from mainland China, South Korea, Taiwan, and Vietnam. The case, numbered A-570-227, covers the period from September 1, 2025, to March 31, 2026, and involves products under tariff codes 3907.29.00 and 2932.11.00. This move signals a critical escalation of global chemical trade friction, extending from the EU's recent anti-dumping action on 1,4-Butanediol (BDO) to its core downstream product, with significant implications for China's exports of spandex and Polyurethane elastomers.

I. Key Details of the US PTMEG Anti-Dumping Case

(1) Case Overview

  • Petitioner: BASF Corporation (USA)

  • Scope of Investigation: PTMEG originating from mainland China, South Korea, Taiwan, and Vietnam.

  • Period of Investigation: September 1, 2025 – March 31, 2026.

  • Product in Question: Polytetramethylene Ether Glycol (PTMEG), a key raw material for spandex and TPU.

  • Excluded Products: Products already covered by the 2009 anti-dumping duty order on graphite electrodes.

The physical characteristics of the product under investigation are as follows:

(2) Estimated Anti-Dumping Investigation Timeline

(3) Key Actions for Companies to Respond

  • Immediately communicate with US importers to clarify response stance and future procurement intentions.

  • Comprehensively compile export volume and value data to the US during the investigation period to establish a solid factual basis.

  • Engage specialized legal counsel promptly after the case is initiated to submit quantity and value questionnaires.

  • Apply for a separate rate in a timely manner to strive for a cooperative rate significantly lower than the potential nationwide punitive rate.

II. Pressure Mounts Across the BDO Value Chain

BDO (1,4-Butanediol) is the core upstream raw material for PTMEG. Approximately 50% of China's BDO capacity is used for PTMEG production, forming a complete industrial chain: BDO → THF → PTMEG → Spandex/Polyurethane Elastomers. The trade friction demonstrates a chain reaction spreading from upstream to downstream.

(1) BDO Anti-Dumping: EU Took the First Step

The EU initiated an anti-dumping investigation into Chinese BDO in June 2025 and issued an affirmative preliminary ruling in February 2026, imposing duties of 105.6%–113.7% on Chinese companies. This covers both bio-based and fossil-based BDO, directly increasing the export cost of Chinese BDO to Europe and squeezing corporate profit margins.

(2) PTMEG Anti-Dumping: US Applies Pressure in Turn

BASF's push for trade protection in both the BDO and PTMEG sectors creates a dual blockade upstream and downstream: restricting the cost advantage of raw material supply on the BDO side, and directly targeting China's export of finished products on the PTMEG side. The potential of dual tariffs would significantly weaken the competitiveness of related Chinese products in the US market.

III. Impact of Dual Anti-Dumping Actions on Chinese Industry

The successive anti-dumping actions by the US and EU on BDO and PTMEG will not only directly increase export costs and severely undermine the price competitiveness of these products, putting significant pressure on China's overseas market share as a major producer and exporter. The impact will also cascade down the industrial chain, creating a ripple effect on downstream application sectors such as spandex, TPU, textiles, and automobiles, dragging down profitability across the entire chain. Furthermore, companies will need to invest substantial human and material resources to respond to investigations, verifications, and defenses, further raising compliance costs and overall operational pressure.

Source: BDO Research Institute