By Naveen Thukral
JAKARTA (Reuters) -Feed millers in Vietnam are taking advantage of bargain prices for Canadian canola meal after China, the product's traditional buyer, curbed purchases by imposing hefty anti-dumping duties earlier this year, three traders said on Tuesday.
Vietnamese millers have been importing around 30,000 metric tons a month of Canadian canola meal, used mainly in animal feed, for the past few months, two Singapore-based traders and one Ho Chi Minh-based trader told Reuters on the sidelines
of an international industry conference in Jakarta.
"The volumes are not huge as compared with what China was buying but shipments are heading to Vietnam," said one of the Singapore traders. "We expect more deals in the coming months."
Vietnamese feed makers were paying $220 per metric ton, including cost and freight, for Canadian canola, compared to around $300-$310 per ton paid by Chinese buyers before the duties were imposed in March.
The traders declined to be named as they were not authorised to speak to the media.
Canadian officials had constructive talks with their Chinese counterparts about Beijing's duties during a recent visit, Prime Minister Mark Carney's office said in a statement on Friday.
China, the world's largest importer of canola, imposed preliminary duties of 75.8% on Canadian canola seed imports in August.
Earlier, Beijing had imposed a 100% retaliatory tariff on imports of rapeseed meal and oil from Canada, effective March 20.
Some Canadian canola meal cargoes, which arrived in China after the 100% duty took effect and are now stuck in bonded warehouses, could be redirected to Vietnam, traders said.
Up to 400,000 metric tons of canola meal are sitting in secure warehouses near Chinese ports, with importers facing a 100% duty if they release the cargoes for sale in the domestic market.
"Trading companies which have Canadian canola lying in China are trying to sell to feed companies in Vietnam," said the second Singapore trader. "But the demand is not very big."
(Reporting by Naveen Thukral; Editing Saad Sayeed)
