India Proposes Anti-dumping Duty on Polyols Form China and Thailand

The Indian Directorate General of Trade Remedies (DGTR) proposes anti-dumping duties on Chinese and Thai flexible slabstock polyol suppliers. The recommendation suggests enforcing these duties for five years unless repealed.

In accordance with this proposal, imports from Wanhua Chemical would be subject to a duty of $534 per metric tonne, while other Chinese producers would be subject to a duty of $608 per metric tonne. Thai producers would be assessed a duty of $480 per metric tonne, with the exception of GC Polyols, whose products would be subject to a duty of $470 per metric tonne.

The Directorate General of Trade Remedies (DGTR) initiated an investigation following a petition from Manali Petrochemicals, the sole manufacturer of Polyols in India. The Chennai-based company reported a 62% drop in net profit for the financial year ending 31 March 2023, with total revenue down 12% to INR 10.6bn ($127m). In the fourth quarter, income fell 22% to INR 2.62bn, with a net profit of INR 13m. Manali Petrochemicals attributed the decline to higher raw material costs and the dumping of cheaper imported materials.

DGTR estimates that India's flexible slabstock polyol capacity is 50,000 metric tonnes per year, but it is only operating at two-thirds of capacity. The report suggests that imports are preferred over domestic production due to lower prices rather than a supply-demand gap, resulting in underutilization. DGTR also emphasises that the domestic industry has been unable to effectively utilize its capacity due to aggressive dumping, price undercutting, and underselling, which has impeded any expansion efforts.

Source : Directorate General of Trade Remedies (DGTR)