12 June 2013 13:08 [Source: ICIS news]
LONDON (ICIS)--The European methylene chloride market is not expecting any significant impact from potential import restrictions to India as a result of an ongoing anti-dumping investigation, market sources said on Wednesday.
Sources said any potential influence would be mitigated as exporters will be able find other destinations for their product.
Earlier this year two Indian methylene chloride producers filed a letter of complaint accusing European exporters of being overly competitive and adding downward pressure on the domestic market.
In April, India’s Ministry of Commerce and Industry announced it had enough evidence to begin a full investigation.
“We have not heard of any restrictions imposed [at the moment],” said an industry source which does export business in India.
The source added that any impact on the European market will depend on the scale of the restrictions and the companies involved, but it does not “expect a major impact price-wise, given what we have seen in previous anti-dumping cases.”
“This is a global market and there are other destinations [for European exporters to send their cargoes],” the source added.
Other market players were more wary of losing India as a buyer, however.
“There could be some effect,” a second source said. “There is an oversupply in the market at the moment, which is why some product was being sent east.”
The source added that European demand is seasonally low this time of year, and the loss of an export destination could add downward pressure on prices.
About 20% of all methylene chloride in India is imported, mainly from Europe and the US, a document from the Ministry of Commerce and Industry, Directorate General of Anti-dumping said on 4 April 2013.
Europe’s nameplate methylene chloride production capacity is 590,000 tonnes/year, according to ICIS data. The chemical’s biggest application is in adhesions, paint stripping and removers, which together account for half of its total consumption in Asia, industry sources said.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections