India mulls imposing duties on phenol imports

19 July 2007 11:01  [Source: ICIS news]

SINGAPORE (ICIS news)--Buying sentiment for phenol imports has turned cautious in India following a government ministry’s recommendations to implement fresh anti-dumping duties (ADD) on cargoes from the EU, Singapore and South Africa, traders said on Thursday.

 

The news had no immediate impact on domestic prices of imported phenol, which were largely traded at rupees (Rs) 72-73/kg ($1.78-1.81/kg) ex-tank Kandla, unchanged from the previous week.

 

India’s Ministry of Commerce and Industry said in a notification obtained by ICIS news it had recommended duties ranging from $206/tonne to $218.26/tonne be imposed on cargoes from the above three countries following a mid-term review.

 

The proposed duties are expected to replace an earlier ruling in 2003 where buyers of phenol from the EU, Singapore and South Africa had to pay ADD, which worked out to be the difference between the landed value of the imports and the bottom price set by the government ranging from $710.84/tonne to $778.59/tonne.

 

“People are trying to clear their cargoes quickly, especially the traders who have to be very careful about their volumes,” said an importer in India.

 

It was not known when the duties would take effect as the findings were still subject to approval by government authorities, traders and sellers said.

 

A Singapore exporter was surprised by the high ADD but added there would still be room for imports as domestic production was insufficient to meet total demand.

 

“They will still have to import,” he said.

 

Imports currently make up nearly half of the total phenol demand in India, which was estimated by some traders to be about 150,000 tonnes/year.

 

Separately, the ministry is also carrying out an ADD investigation into imports from Korea, Taiwan and the US, which was initiated on 11 January this year. The preliminary findings were expected to be released in August or September, traders said.

 

($1 = Rs40.35)

By: Peh Soo Hwee
+65 6780 4359

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