India imposes anti-dumping duty on paste PVC from EU

30 June 2010 16:54  [Source: ICIS news]

SINGAPORE (ICIS news)--India has imposed an anti-dumping duty (ADD) of $267.38/tonne on paste (emulsion) grade polyvinyl chloride (PVC) imports from the European Union (EU), industry sources said on Wednesday.

The ADD would be levied on paste PVC originating from or exported from EU countries to India from 1 July and would be valid for five years, the sources said.

The Indian government announced the ADD after a year-long review of dumping charges against EU exporters which began on 1 April 2009, the sources said.

The notification, issued by the Indian Ministry of Finance, states the ADD was imposed as there was evidence of “dumping activity” by the EU exporters which “caused injury to domestic producers in India.”

India has only two PVC producers that produce paste grade PVC - ChemPlast with a capacity of 30,000 tonnes/year and Finolex Industries with a capacity of 5,000 tonnes/year.

India’s demand for paste grade PVC was expected to grow at 15% year-on-year in the financial year ending 31 March 2011, a source close to one of the producers said.

“Current consumption in India for this grade is around 75,000 tonnes/year,” the source added. Local production, therefore meets less than 50% of domestic demand.

The main driver of demand growth for this grade was the automotive segment, the source said. Paste grade PVC is used mainly to produce synethetic leather, which goes into upholstery for furniture and cars.

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By: Prema Viswanathan
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