PP anti dumping duty shocks

Anti-dumping duty (ADD) on polypropylene (PP) imports from Singapore, Saudi Arabia and Oman has finally been announced. And the high level of duties, which are company specific and range from $44.40/tonne to $1,033.65/tonne, has upset many processors and importers.

I have been told that one of the reasons for imposing a stiff penalty is because different invoices that were raised for imports from 1 April to 31 December 2008, the period under investigation. PP prices had fallen heavily during most of this period and sellers had offered price protection to push material out of their warehouses. It appears that in many cases a cargo was booked at one price, loaded at another price and delivered at a third price.

I also hear that the highest duty was imposed on producers who did not cooperate in the investigations.

It will take six more months for the investigation to be concluded but I don’t think there are many who expect the ADD to be scaled back.

And we could be seeing more action in this space. I hear that imports from three more countries are being closely scrutinised. As I said on Monday, the government is receptive to complaints about dumping and producers are likely to take full benefit of this.


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