Anti-dumping duty on soda ash to tighten Indian market

20 July 2012 15:15  [Source: ICIS news]

LONDON (ICIS)--The Indian soda ash market is likely to tighten as a result of an anti-dumping duty which has been introduced on some imports, a source representing Indian soda ash buyers said on Friday.

The Indian finance ministry introduced the duty on soda ash imports from China, the EU, the US, Iran, Pakistan, Kenya and Ukraine on 6 July.

"I expect soda ash will become scarcer and more expensive [in India]. We are now looking for new suppliers from Turkey [where the anti-dumping duty does not apply]," said the source.

The Indian revenue department said the duty will be imposed for five years. It ranges from $2.38-$38.79/tonne (€1.93-31.42/tonne), depending on the producer and country of export.

Rates range from $9/tonne on imports from the EU, $38/tonne from the US, $36/tonne from China, $28/tonne from Iran and $15/tonne from Ukraine.

"I will probably look to buy from Turkey and the EU, as the EU rates are lower and there is no duty from Turkey," the buyer said.

One European soda ash producer said the anti-dumping duty will have little impact on European exports as India is not a major market for the region's producers.

However, the producer added it has received several inquiries from India looking for additional soda ash.

"Hopefully the lower duty [on EU-origin soda ash] will give us an advantage over Ukraine or the US," it said.

Around half the global consumption of soda ash is used in the production of glass.

($1= €0.81)

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By: Janos Gal
+44 208 652 3214

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