24/11/05 SHANGHAI (AFX) - Chinese candle makers will have to cut exports to the US next year if a decision expected in January puts candles made from palm oil in the same category as petroleum wax candles, the Shanghai Daily reported.

More than 10,000 Chinese candle makers and 30,000 affiliated suppliers of fragrances, candle stands and cotton wicks would be affected by an adverse ruling, putting in jeopardy hundreds of thousands of jobs, the paper said, citing industry sources.

The US started a dumping investigation into Chinese palm wax candles in March, claiming the products are only minor alterations of the petroleum wax candles that are now subject to punitive duties.

Petroleum-based candles have faced a 108.3 pct anti-dumping tariff since December 2004.

If the January ruling goes against it, the blow to the Chinese candle industry would be huge, as 90 pct of the country's candle exports are made of palm wax, the paper said citing unnamed officials at the China Chamber of Commerce for Import and Export of Foodstuffs, Native Products and Animal By-products.

China is the world's biggest candle supplier.

Last year, the US bought 139 mln usd worth of Chinese candles, accounting for 60 pct of total Chinese exports.