Up to 400 thsd tons of Canadian rapeseed meal stuck in Chinese warehouses

Up to 400,000 tonnes of rapeseed meal that arrived in China after Beijing imposed steep import duties are being held in guarded warehouses near Chinese ports, with importers facing a 100% duty if they release the cargo for sale domestically, Reuters reports.

“It’s not viable to pay the duty, so we’re looking at reselling it in other markets, perhaps to feed makers in Southeast Asia or South Korea,” said the head of a trading company that imports Canadian canola meal.

Traders say the canola meal is being offered to buyers at a discount of about 30%.

The stranded cargoes highlight the difficulties of agricultural companies caught in trade standoffs as Washington and Beijing’s tariff war has disrupted trade in agricultural products including soybeans.

China announced Tuesday a 75.8% anti-dumping duty on Canadian canola oilseed imports, escalating a yearlong trade dispute that began last August when Ottawa imposed tariffs on Chinese electric vehicles. In March, China imposed a 100% tariff on Canadian canola oil, meal and peas. The canola meal stuck in Chinese ports is worth about $120 million, traders said.

Tags: China, Canada, rapeseed meal