India to impose final ADD on S Korea, Taiwan, Israel PA soon

16 May 2012 09:23  [Source: ICIS news]

KOLKATA (ICIS)--India is likely to impose a final antidumping duty (ADD) on imports of phthalic anhydride (PA) from South Korea, Taiwan and Israel soon, a government official said on Wednesday.

The country’s Department of Chemicals and Petrochemicals (DCPC) has determined that PA dumping into India is happening, necessitating the imposition of the ADD to protect the domestic industry, the official from the Ministry of Chemicals and Fertilizer said.

“Market share of imports from these countries have increased substantially. This is posing a threat of material injury to the domestic industry which is suffering a consequential loss of market share,” the official said.

DCPC, in a communication to the Director General of Anti Dumping and Allied Duties (DGAD), stated that a safeguard duty of 10% ad valorem levied in January 2012 should be followed up with a final anti-dumping duty at the earliest. DGAD has yet to decide on the rate of antidumping duty that will be implemented.

The recommendation to expedite the imposition of final ADD on PA came after the Indian Chemical Council (ICC) complained that domestic PA producers continued to hurt from the influx of material from South Korea, Taiwan and Israel.

India’s PA imports are currently subject to a 7% duty, on top of the 10% safeguard duty that was implemented in January this year.

ICC has pointed out that China and Pakistan have already levied final antidumping duties on PA imported from South Korea, Taiwan and Israel at 13% and 27%, respectively. India, on the other hand, appears to be delaying similar imposition despite completing anti-dumping investigations that commenced in 2009.

India’s imports of PA more than doubled to 61,965 tonnes between April 2010 and March 2011, compared with 28,098 tonne during April 2009 and March 2010.

Its domestic PA production, on the other hand, has steadily declined on a quarterly basis. India’s PA output stood at 50,124 tonnes the January-March 2012, down from close in the September quarter of 2011, government data showed.

Capacity utilization at domestic PA facilities declined to 75% in 2011-12 from 87% in 2010-11, according to Ministry of Commerce data.

Major PA producers in India include Thirumalai Chemicals Limited, IG Petrochemicals Limited, Mysore Petrochemicals Limited and SI Group India Ltd. These four companies account for over 87% of total domestic production.

PA is the principal commercial form of phthalic acid used in organic synthesis of plastics and plasticizers.

By: Ajoy K Das
+65 6780 4359

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