India slaps ADDs on acetone imports from Taiwan, Saudi Arabia

Veena Pathare

28-Jan-2015

By Veena Pathare

India slaps ADDs on acetone imports from Taiwan, Saudi ArabiaSINGAPORE (ICIS)–India has slapped antidumping duties (ADDs) on imports of acetone from Taiwan and Saudi Arabia, according to a government notification released on Wednesday.

For Taiwanese producers Taiwan Prosperity Chemical Corp (TPCC) and Formosa Chemicals and Fibre Corp (FCFC), ADDs of $205.05/tonne and $86.10/tonne, respectively, will apply, based on the official statement posted on India’s Ministry of Commerce website.

Cargoes from Saudi Arabia’s SABIC, on the other hand, will be subjected to an ADD of $132.98/tonne.

A number of market players were surprised by the high ADDs imposed, particularly the one slapped on TPCC’s cargoes.

Offers for cargoes of Taiwanese origin in the Indian domestic market rose to as high as Rs60-62/kg ex-tank following the announcement of ADD imposition. On Wednesday morning, these cargoes were being offered at Rs56-57/kg ex-tank.

India’s demand for South Korean acetone may surge since cargoes from the northeast Asian country is subject to a smaller ADD of $79.75/tonne, market sources said.

“Taiwanese cargoes are also likely to now compete in the advance licence market, a segment that was previously dominated by Singapore-origin cargoes,” said an Indian importer.

The advance licence market, also known as the re-export market, is composed of Indian acetone importers that ship out their finished products and thus, are exempted from paying the ADDs.

Actual implementation of the ADDs on imports from Taiwan and Saudi Arabia is pending the final notification that will be issued by Indian Customs.

Read John Richardson’s blog – Asian Chemical Connections

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