China Disposable Syringe Faces Brazilian Anti-Dumping Investigation

The Trade Protection Bureau of Brazil's Ministry of Development, Industry, and Foreign Trade recently received an application from a local company for anti-dumping investigation of a disposable plastic syringe produced in China, and determined that the application materials were in compliance. At present, Brazil is the third largest destination country for China’s exports.
Still not sure whether to take action According to statistics from the Customs, in 2007 China exported 340 million disposable syringes to Brazil, an increase of 18.72% over the previous year, and the export value was 9.17 million US dollars, an increase of 75.86% over the previous year. This time, the disposable syringes targeted by Brazil include 1ml, 3ml, 5ml, 10ml, 20ml and other capacities.
As no exact material has yet been seen, it is not known that the damage caused by the export products of Chinese enterprises to Brazil will be specific. The other party is likely to file an anti-dumping case and we are actively liaising with the company. There are no specific statistics for companies engaged in exporting to Brazil. The Medical Insurance Association initially estimated that there are more than 20 companies. Since these companies have encountered anti-dumping problems for the first time, they are still considering whether to respond.
Low-cost, low-profit disposable syringes with domestic sales prices of more than 0.2 yuan currently have export prices of only RMB 0.18 to 0.19 yuan. Many companies rely on export tax rebates to obtain profits. One-time medical device exports are divided into high, medium and low grades, while the phenomenon of low-cost exports mainly occurs in small and medium-sized enterprises, and export prices are usually 20% to 30% lower than large companies.
According to industry association data, the one-off medical device market with a current market capacity of only over 3 billion yuan has accommodated more than 300 companies. The enterprises are highly concentrated and continue to suppress price vicious competition. Previously, the one-off syringe with a factory price of approximately RMB 0.3 had fallen to 0.2 yuan in the past two years, and its gross profit margin had also dropped from the original 40% to 50% to the current negative value.
Due to the low price space in the domestic market, many companies have to switch to foreign markets. However, the same low-cost and low-profit phenomenon has caused disposable medical device companies to fall into a vicious cycle. The anti-dumping of foreign markets is even more of a stick for companies.