India launches anti-dumping probe on FSP imports from China, Thailand

India has initiated an anti-dumping investigation into imports of flexible slabstock polyol from China and Thailand, following claims that low-priced imports are causing harm to the domestic industry.

India has launched an anti-dumping investigation into flexible slabstock polyol (FSP) imports from China and Thailand, as per a notification issued by the Directorate General of Trade Remedies (DGTR). The investigation follows a complaint by Manali Petrochemicals Limited, the sole domestic manufacturer of FSP, which claimed that low-priced imports are adversely impacting the Indian industry. The company also requested that China be designated as a non-market economy in the investigation.

As per the notification, “The price of the imports from the subject countries has declined significantly and the subject imports are undercutting and are supressing and depressing the prices of the domestic industry. Further the subject imports are priced below the cost of the domestic industry and even lower than the raw material cost of the domestic industry. The production, capacity utilization and domestic sales of the domestic industry declined over the period, as a result of which its market share also declined. This has resulted in significant piling up of inventories. The domestic industry has claimed that the presence of dumped imports has resulted in significant financial losses, cash losses and negative return on investments.”

The DGTR noted that Manali Petrochemicals has presented adequate prima facie evidence suggesting that FSP imports have caused harm to the domestic industry. It stated that import prices from China and Thailand have seen a significant decline, raising further concerns about potential dumping.

Flexible Slabstock Polyol, is a clear viscous liquid polymer of molecular weight 3000-4000 manufactured by polymerization of propylene oxide and ethylene oxide with a triol chain starter. It is a polyether and on reaction with catalysts and additives, yields polyurethane foams which is used in upholstery, mattresses, pillows, bolsters, transport seating and packaging. The major raw materials used in the production process are propylene oxide and ethylene oxide.