DGTR recommends anti-dumping duty on PVC resins

The DGTR, the Commerce Ministry’s investigation arm, has proposed an anti-dumping duty of up to US$ 339 per tonne on PVC resin imports, aiming to safeguard domestic manufacturers. The notification of the directorate said that the imports from China, Indonesia, Japan, Korea RP, Taiwan, Thailand, and the US – have caused material injury to the domestic industry.

The Directorate General of Trade Remedies (DGTR) has recommended a provisional anti-dumping duty of up to US$ 339 per metric tonne on PVC suspension resin imports from seven countries- China, Indonesia, Japan, Korea RP, Taiwan, Thailand, and the US.

PVC suspension resin is the main raw material for rigid and flexible plastics. It is essential in manufacturing pipes, packaging, bottles, footwear, and cable insulation, and supports major industries such as automotive, construction, and medical.

In 2023-24, India imported US$ 1.8 billion worth of PVC suspension resin, a slight decrease from US$ 2 billion in the previous year, with China as the largest supplier at US$ 580 million, followed by Japan, Taiwan, South Korea, and the US.

The DGTR’s proposal followed a detailed investigation after DCM Shriram Ltd, DCW Ltd, and Chemplast Cuddalore filed complaints, claiming that low-priced imports were impacting their growth and profitability. The investigation covered imports from October 2022 to September 2023, with injury analysis from April 2020 to March 2023. Findings revealed that imports surged by 126% during the injury period, outpacing the 49% rise in domestic demand and constituting a majority of domestic consumption.

The DGTR reported that this influx of low-cost imports forced domestic producers to sell below cost, resulting in mounting financial losses, particularly in 2022-23. The domestic industry, which was profitable in 2020-21 and 2021-22, faced financial losses in 2022-23 and throughout the investigation period. Although sales volumes increased, profitability declined sharply due to price pressures, as lower-cost imports hindered the industry’s ability to raise prices to sustainable levels, pushing domestic producers into deeper financial strain.

Interested parties have 30 days to comment on these preliminary findings before DGTR issues its final decision.