In a statement, the Ministry of Commerce (MoC) said the probe was launched at the request of Hunan Haili Chemical Industry, a supplier of the chemical.
Haili Chemical, a pesticides and fine chemicals producer based in southern China's Hunan province, booked first-quarter net profit of 3.15 million yuan (€310,000), down 49 per cent from a year ago, according to AFX News.
In its quarterly results, it blamed low-priced benzofuranol imports and rising raw materials prices for a 13 per cent drop in gross profit margin for its fine chemicals operations, which contributed 17.09 million yuan - or 16 per cent of the company's total revenue during the first three months of this year.
The anti-dumping probe application submitted by Haili Chemical was supported by Jiangsu Shennong Chemical, another fine chemicals maker. The two companies are the only two domestic producers of benzofuranol, the MoC said.
The investigation is due to be completed before 12 August 2005.
