Corrected: India revokes ADD on Saudi PP imports from 30 December 2011

03 January 2012 06:27  [Source: ICIS news]

Correction: In the ICIS news story headlined "India revokes ADD on Saudi PP imports from 30 December 2011" dated 3 January 2012, please read in the accompanying table that the capacity of Saudi Yanbu PP plant is 260,000 tonnes/year ... instead of ... 350,000 tonnes/year .... A corrected version follows.

By Ong Sheau Ling

Powdered PP is used in the production of woven bagsSINGAPORE (ICIS)--India has finally lifted the anti-dumping duty (ADD) imposed on polypropylene (PP) cargoes originated or exported from Saudi Arabia with effect from last week, a move that may put pressure on the Indian market, industry players said on Tuesday.

India’s Central Board of Excise and Customs made the announcement about the lifting of the ADD on 30 December.

Saudi PP industry and government officials had long been urging New Delhi to revoke the ADD.

A total of eight Saudi companies will now enjoy zero ADD, unlike their counterparts in Singapore and Oman. (please see table below)

Previously, Saudi, Oman and Singapore’s PP products were subjected to an ADD of $28.49-323.50/tonne (€22-249/tonne), effective from 30 July 2009, for a five year period.

The statement did not announce any change in the ADD for Oman and Singapore’s PP origins or exports. It gave no other details.

The lifting of the ADD levied on Saudi PP imports will add price competition on PP products to India, which is already a net PP exporter.

“We will see some supply pressure as a result of the removal of ADD. This will weigh on prices,” a Mumbai-based trader said.

However, an Indian polyolefin producer said he did not think that “Saudi producers will dump their cargoes in India since the prices here are not that superb”.

Still there were chances that the Indian producers decide to challenge the lifting because the country is already a net exporter and will not welcome any large imports, another Indian polyolefin maker said.

“There may be a counter action by the Indian industry against this lifting of ADD,” he added.

On 3 January, a Saudi producer reduced its January offers from last week by $5-25/tonne to $1,255/tonne CFR (cost and freight) Mumbai for PP raffia materials, industry players said.

Average weekly prices of PP raffia were at $1,280/tonne CFR Mumbai, ICIS reported on 30 December.

PP producers in Saudi Arabia

Company

Location

Joint venture

Nameplate capacity (kt/yr)

Saudi European Petrochemical Co

Al Jubail

SABIC and the European Consortium

320

320

500

Al-waha Petrochemical Co

Al Jubail

Sahara Petrochemical Co (75%) and LyondellBasell (25%)

450

Saudi Yanbu Petrochemical Co (Yanpet)

Yanbu

SABIC and Exxonmobil

260

Saudi Kayan

Al Jubail

SABIC and Al-Kayan Petrochemical

350

Saudi Polymers Co

Al Jubail

Arabian Chevron Phillips Petrochemical (35%) and National Petrochemical (65%)

400

Saudi Polyolefins Co (SPC)

Al Jubail

National Industrialisation Co (Tasnee) and LyondellBasell

450

Rabigh Refining and Petrochemical Co (PetroRabigh)

Rabigh

Saudi Aramco (50%) and Japan's Sumitomo Chemical (50%)

700

Advanced Polypropylene (APC)

Al Jubail

 

450

($1 = €0.77)

Please visit the complete ICIS plants and projects database
For more information on PP, visit
ICIS chemical intelligence
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections


By: Ong Sheau Ling
+65 6780 4359



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