Statement on new EU choline chloride anti-dumping measures

Rhea-AI Summary

Balchem (NASDAQ:BCPC) and Eastman welcomed the EU decision published on Dec 19, 2025 to impose anti-dumping duties of 90.0%–115.9% on choline chloride imports from China, effective for five years with possible renewal.

The producers say the measures protect EU food and feed supply chains, preserve jobs, support continued EU investment and innovation, and ensure supply stability and high health and safety standards. The statement also notes revised customs origin rules clarifying that liquid choline chloride retains Chinese origin if the key chemical reaction occurred in China, helping prevent circumvention.

Positive

• Anti-dumping duties set at 90.0%–115.9%
• Measures effective for five years with renewal possibility
• EU industry claims sufficient production capacity to serve full market demand
• Clarified origin rules to prevent circumvention of duties

Negative

• Company will monitor attempts to circumvent the measures
• Effective implementation depends on ongoing enforcement by authorities

Key Figures

Anti-dumping duties lower bound 90.0% EU duties on choline chloride imports from China

Anti-dumping duties upper bound 115.9% EU duties on choline chloride imports from China

Measure duration 5 years EU anti-dumping measures effective period

Decision publication date December 19, 2025 EU adoption of anti-dumping duties

Market Reality Check

$157.02 Last Close

Volume Volume 475,898 is about 2.0x the 20-day average of 237,997, indicating elevated trading interest ahead of this policy news. high

Technical Price at 156.3 is trading below the 200-day moving average of 158.21, suggesting a modestly weaker pre-news trend.

Peers on Argus

Peers in Specialty Chemicals showed mixed, mostly modest moves (e.g., SXT +0.14%, CBT -1.33%, ESI -0.51%, SSL +0.65%, AXTA +0.38%), indicating BCPC’s -1.52% move was more stock-specific than sector-driven.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 10	Dividend announcement	Positive	+2.4%	Annual dividend raised 10.3%, seventeenth consecutive annual increase.
Oct 30	Conference participation	Neutral	+0.2%	Management presenting at major industrial investor conference.
Oct 21	Earnings results	Positive	+4.1%	Q3 2025 sales and earnings growth with stronger cash flow and lower net debt.
Oct 07	Earnings call notice	Neutral	-1.4%	Announcement of timing and access details for Q3 earnings call.
Aug 26	Conference participation	Neutral	+0.2%	Planned appearance at H.C. Wainwright global investment conference.

Pattern Detected

Recent clearly positive fundamental and capital-return news (earnings, dividend increase) have coincided with positive one-day price reactions, suggesting the stock has generally responded constructively to favorable company developments.

Recent Company History

Over the last six months, Balchem reported stronger Q3 2025 results on Oct 21, with net sales of $267.6M and net earnings of $40.3M, which coincided with a +4.06% one-day move. An annual dividend of $0.96 per share, a 10.3% increase, announced on Dec 10, also saw a positive +2.35% reaction. Multiple conference appearances and the Q3 call had smaller price impacts. Today’s EU anti-dumping decision directly relates to choline chloride, a product area highlighted in prior filings, adding a policy tailwind alongside earlier operational momentum.

Market Pulse Summary

This announcement details EU anti-dumping duties of 90.0%–115.9% on choline chloride imports from China, effective for five years. For Balchem, an EU producer, this supports the regional food and feed supply chain and reinforces prior disclosures that highlighted the pending investigation. Investors may monitor how these measures affect choline chloride pricing, capacity utilization, and future EU trade clarifications, alongside established financial drivers such as sales growth and cash generation seen in recent quarters.

Key Terms

anti-dumping duties regulatory

"decision published on December 19, 2025 to adopt anti-dumping duties between 90.0 and 115.9%"

A tariff imposed by a government on imported goods that are believed to be sold abroad at unfairly low prices (known as "dumping"); the extra charge acts like a temporary surcharge to bring foreign prices closer to domestic market levels. Investors watch these duties because they can raise costs for importers, protect local producers, change competitive dynamics, and alter revenue or margin outlooks for companies exposed to affected products or markets.

customs origin rules regulatory

"welcome the recent clarifications of the customs origin rules which will help prevent circumvention"

Customs origin rules determine which country a product is officially considered to come from for trade purposes, based on where parts were made or where the product was last significantly changed. For investors, these rules are important because they affect tariffs, eligibility for free‑trade benefits, compliance costs and supply‑chain choices—much like a passport that can change the taxes and paperwork a shipment faces, altering margins and market access.

trimethylamine hydrochloride technical

"chemical reaction for choline chloride between trimethylamine hydrochloride and ethylene oxide"

Trimethylamine hydrochloride is a simple, crystalline chemical salt used as a building block in laboratories and in the manufacture of pharmaceuticals, agricultural chemicals and specialty materials. For investors, it's like a key ingredient in a factory recipe: its availability, purity and regulatory handling can affect production costs, supply chains and safety compliance for companies that make drugs or fine chemicals, so shortages or regulatory actions can influence those firms' operations and margins.

ethylene oxide technical

"chemical reaction for choline chloride between trimethylamine hydrochloride and ethylene oxide"

Ethylene oxide is a flammable, colorless gas used industrially to make plastics and other chemicals and as a sterilizing agent for medical equipment. Investors should care because its use and emissions are tightly regulated—like a tool that can both build products and create legal or cleanup costs—so changes in safety findings, permits, or supply disruptions can affect manufacturing, liabilities, and company valuations.

AI-generated analysis. Not financial advice.

EU producers laud EU for addressing choline chloride dumping by China; measures will help preserve jobs and secure feed supply chain

MONTVALE, N.J., Dec. 22, 2025 (GLOBE NEWSWIRE) -- As producers of choline chloride in the EU, Eastman and Balchem welcome the European Union's decision published on December 19, 2025 to adopt anti-dumping duties between 90.0 and 115.9% on choline chloride imports from the People's Republic of China. This decision, which will be effective for five years with the possibility of renewal, confirms Europe's determination to ensure the continuation of an important part of the EU food and feed supply chain in the face of unfair trade practices from producers in China.

Defending fair trade in choline chloride is essential to preserving European jobs, encouraging industrial innovation, and supporting a strong and sustainable supply chain for EU food and feed.

Representatives of the EU producers express their companies’ gratitude to the European Commission, and in particular to the Directorate-General for Trade (DG TRADE), for its rigorous work, independence, and ongoing commitment to fair trade.

The EU industry, which has sufficient production capacities in place to accommodate the full EU market demand and growth for the foreseeable future, sees these measures as essential for assuring their ability to continue their investments in EU production, employment and innovation.

More generally, these measures allow the EU supply chain and EU consumers to have a healthy domestic EU choline chloride industry which can ensure supply stability and compliance with the highest health and safety standards. Especially in a time of geopolitical instabilities, the EU cannot afford to allow unfairly traded imports from China to make EU food and feed industries wholly dependent on Chinese suppliers.

The EU producers will continue to work closely with the European Commission and national authorities to ensure the effective implementation of these measures and to monitor any attempts to circumvent them. In this regard, the producers also welcome the recent clarifications of the customs origin rules which will help prevent circumvention of the anti-dumping measures via the placing of liquid choline chloride on a carrier in a country other than China. The origin rules now state that, for purposes of determining the origin of choline chloride products, the last substantial transformation which confers origin is the country where the chemical reaction for choline chloride between trimethylamine hydrochloride and ethylene oxide takes place. In other words, liquid choline chloride made in China and put on a carrier in a third country, e.g. Vietnam, still has Chinese origin upon importation into the EU.

About Balchem Corporation

Balchem Corporation develops, manufactures and markets specialty ingredients that improve and enhance the health and well-being of life on the planet, providing state-of-the-art solutions and the finest quality products for a range of industries worldwide. The company reports three business segments: Human Nutrition & Health; Animal Nutrition & Health; and Specialty Products. The Human Nutrition & Health segment delivers customized food and beverage ingredient systems, as well as key nutrients into a variety of applications across the food, supplement and pharmaceutical industries. The Animal Nutrition & Health segment manufactures and supplies products to numerous animal health markets. Through Specialty Products, Balchem provides specialty-packaged chemicals for use in healthcare and other industries, and also provides chelated minerals to the micronutrient agricultural market.

Contact:	Jacqueline Yarmolowicz
	Balchem Corporation
	(Telephone: 845-326-5600)

FAQ

What did Balchem (BCPC) say about the EU anti-dumping duties on choline chloride on Dec 19, 2025?

Balchem welcomed the EU decision imposing 90.0%–115.9% duties on choline chloride from China, calling the measures essential to protect EU jobs and supply chains.

How long will the EU anti-dumping duties on choline chloride affecting BCPC be in force?

The duties are effective for five years from Dec 19, 2025, with a possibility of renewal.

How do the EU origin rules affect choline chloride imports relevant to BCPC?

Origin rules state the country of the chemical reaction determines origin, so liquid choline chloride made in China retains Chinese origin even if shipped from a third country.

Will the EU choline chloride measures impact Balchem's ability to supply the EU market?

Balchem said EU producers have sufficient production capacity to accommodate full EU market demand and growth for the foreseeable future.

What enforcement risks did Balchem highlight after the EU anti-dumping decision?

Balchem said it will work with the European Commission and national authorities to ensure effective implementation and to monitor any attempts to circumvent the measures.