Business Daily from THE HINDU group of publications
Sunday, May 10, 2009
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Sunday, May 10, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
|
|
|
|
|
Home Page
-
Chemicals Industry & Economy - Anti-dumping Provisional anti-dumping duty on phosphoric acid from Korea mooted G. Srinivasan New Delhi, May 9 The Designated Authority in the Commerce Ministry has recommended imposition of provisional anti-dumping duty on imported phosphoric acid of all grades and all concentrations (excluding agricultural/fertiliser grade) from South Korea. In response to a petition filed by Gujarat Alkalies & Chemicals Ltd and Solaris Chemtech Ltd, the Authority took up a preliminary probe on the subject goods from South Korea. Phosphoric acid, an inorganic chemical, is used for production of sodium phosphate, calcium phosphate, pharmaceutical applications, beverages, seed processing, sugar juice and sugar refining, and food phosphate manufacturing. Performance hitAdvancing factors to establish causal link, the Authority held that analysis of the performance of the domestic industry over the injury period demonstrates that the performance of the domestic industry has materially worsened. It said the volume of dumped import from the subject country has sharply increased at significantly lower prices during the injury investigation period, resulting in marked price under-cutting and under-selling. As a sequel, the domestic industry could not hike its prices in line with increase in the cost of production, leading to financial losses. The dumped imports from South Korea led to suppression of domestic prices that adversely affected the profits, cash flow and return on investments of the company. Accordingly, the Authority deems it necessary and recommends provisional anti-dumping duty on imports at $218.63 a tonne of phosphoric acid of all grades and concentrations (excluding agricultural/fertiliser grade) being imported from South Korea. User industriesThe Authority found no merit in the contentions of the Fertiliser Association of India (FAI), Star Chemicals (Bombay) Pvt Ltd, Mumbai, and by Economic Law Practice, Mumbai, on behalf of Hindustan Unilever Ltd, all from the user industries arguing that the imposition of anti-dumping industry would hurt their industries, inflating their production costs where the subject goods is used as a raw material or intermediate products. It further held that imposition of provisional anti-dumping duty would not restrict imports from the subject country in any way, and therefore, would not affect the availability of the products to the consumers. The user industries’ argument that price of rock phosphates has fallen worldwide has not been borne out with any evidence, the Authority said. Further, their submissions that the prices of phosphoric acid imported from South Korea have gone back to 2005-06 price levels and the price charged by the domestic industry is still 60-70 per cent higher than those charged in international market only corroborates the fact that the Korean prices are to that extent lower than the domestic industry selling prices and this way it has inflicted material injury on indigenous producers, the Authority noted. More Stories on : Chemicals | Anti-dumping | Foreign Trade
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2009, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|
