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The Trade Protection Bureau of Brazil's Ministry of Development, Industry, and Foreign Trade has recently accepted an application from a domestic company to initiate an anti-dumping investigation into disposable plastic syringes manufactured in China. The bureau has confirmed that the submitted documentation meets the required standards. Brazil is currently the third-largest export market for Chinese goods, making this development particularly significant.
It remains uncertain whether formal action will be taken. According to customs data, in 2007, China exported 340 million disposable syringes to Brazil, representing an 18.72% year-on-year increase. The total export value reached $9.17 million, up by 75.86% compared to the previous year. The targeted syringes include various sizes such as 1ml, 3ml, 5ml, 10ml, and 20ml.
Since no official documents have been released yet, it is unclear exactly how much damage the Chinese products are causing to the Brazilian market. However, there is a strong possibility that an anti-dumping case will be filed. Chinese companies are already in communication with local authorities, but many are still evaluating their response options.
There are no precise figures on how many companies export to Brazil, but the Medical Insurance Association estimates that over 20 companies are involved. As this is the first time many of these firms have faced anti-dumping allegations, they are still deciding whether to actively respond.
Currently, disposable syringes sold domestically cost more than 0.2 yuan, but their export price ranges between 0.18 and 0.19 yuan. Many companies rely heavily on export tax rebates to maintain profitability. Disposable medical devices are categorized into high, medium, and low grades, with small and medium-sized enterprises often engaging in low-cost exports, typically pricing their products 20% to 30% lower than larger competitors.
According to industry association data, the single-use medical device market, which has a current capacity of over 3 billion yuan, is home to more than 300 companies. This intense competition has led to a downward spiral in prices. In the past two years, the factory price of a single-use syringe has dropped from approximately 0.3 yuan to 0.2 yuan, with gross profit margins falling from 40% to 50% to negative levels.
Due to the limited profit margin in the domestic market, many companies have turned to international markets. However, the same low-cost and low-profit model has created a cycle of unsustainable growth. Now, facing anti-dumping measures abroad, these companies are under even greater pressure, making the situation increasingly challenging for the sector.