Anti-Dumping Duty on Phthalic Anhydride Imports from Russia Likely to Continue for Another Five Years

Underlying an attempt to safeguard the margins of domestic players, Directorate General of Trade Remedies (DGTR) has recommended the continuation of anti-dumping duty on Phthalic Anhydride imports from Russia as withdrawing it could potentially hurt the domestic producers.

The DGTR proposed the continuation of existing anti-dumping duty of USD 159.43 per MT on Phthalic Anhydride exports originating from Russia for five more years. However, as the imports from Japan have not showcased any trace of material injury to the domestic Phthalic Anhydride industry, anti-dumping duty on its imports to India might be withdrawn in the near-term.

The final call over the anti-dumping decision will be taken after the judgement by the finance ministry of India. The investigation over Phthalic Anhydride imports began after the three major domestic producers, Thirumalai Chemicals, IG Petrochemicals and SI Group, filed a formal application seeking the review and continuation of anti-dumping duty from these countries under fears of potential material injury after its exemption.

Anti-Dumping duty on Phthalic Anhydride imports from Russia and Japan was first levied on December 4, 2015 following alleged material injury calls by the domestic players. Phthalic Anhydride is a crystalline organic compound that is primarily utilized to produce unsaturated polyester resins (UPR) and plasticisers.

As per ChemAnalyst, “The step is a calculative move in favours if the domestic manufacturers as higher profit margins in the domestic market could only be adhered if domestic production is utilized for catering the overall demand in the country. It can also extend further support to the government’s initiative of self-reliant India as the move can opportune potential players to emerge in the Phthalic Anhydride market. “