India slaps ADD on melamine from EU, Japan, Indonesia, Iran

16 November 2012 09:10  [Source: ICIS news]

KOLKATA (ICIS)--India has imposed an antidumping duty (ADD) of $1,537/tonne (€1,199/tonne) on melamine resin/melamine formaldehyde imports from the EU, Japan, Indonesia and Iran, effective 1 November, a government official said on Friday.

“The ADD imposition was based on final recommendations and investigations conducted by the Directorate General of AntiDumping and Allied Duties (DGAD), which was completed in June 2012,” the official from the Ministry of Commerce said.

“The imposition of ADD was delayed because certain legal issues and challenges to the DGAD recommendations had to be completed before the mandatory notification could be issued by the revenue department under the Ministry of Finance,” the official added.

DGAD established that India’s domestic melamine industry was adversely affected by suppression of costs by the producers in the EU and those in three other exporting countries between 1 April 2009 and 30 June 2010. Trading trends during in 2006-2009 were considered in the investigation.

DGAD noted that India’s domestic melamine capacity at 15,000 tonnes/year has not changed during the 15 months of the ADD investigation, but plant utilisation declined by 14% notwithstanding a 64% surge in demand.

Melamine resin or melamine formaldehyde, a thermosetting plastic extensively used on surface coatings and Indian demand was largely for kitchenware and utensils.

India’s melamine imports from the EU, Japan, Indonesia, Iran over the 15-month period under review totalled 15,859 tonnes, accounting for 44.39% of the south Asian country’s total imports of the material, official data showed.

The ADD imposition followed a petition filed before DGAD by Gujarat State Fertilizer and Chemicals Limited (GSFCL).
DGAD has determined dumping margins of 25-35% in the case of imports from the EU and Iran; 20-30% on Indonesian material, and; the highest rate of 40-50% on melamine from Japan.

The government agency further established injury margins of 10-20% for EU, 25-35% for Iran, 5-15% for Indonesia and 5-15% for Japan.

Injury margin refers to the difference between the price at which export was executed and the assumed price that would be necessary to protect domestic industry.

($1 = €0.78)

By: Ajoy K Das
+65 6780 4359

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