• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• BL Club
• Smartbuy
• Books
• Gallery

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

G. Srinivasan

New Delhi, June 20 Based on a petition filed by Reliance Industries Ltd (RIL), the Designated Authority in the Commerce Ministry has recommended imposition of provisional anti-dumping duty on imported polypropylene (PP) from Oman, Saudi Arabia and Singapore.

With a combined capacity of over one million tonnes, Reliance figures among the top eight polypropylene producers in the world and the company holds a 70 per cent share of the domestic market and caters to three per cent of global consumption of PP.

Polypropylene, the most versatile polymer continues to show the highest growth rate in the country, as it finds comprehensive usage in woven-sacks for cement, sugarcane, fertilisers, films for packaging, various consumer items and wide variety of injection moulded items such as auto parts, appliances, furniture and house-ware.

In its preliminary probe conducted after the receipt of a written application from RIL on behalf of the domestic industry alleging dumping of polypropylene (i.e. homo polymers of propylene and copolymers of propylene and ethylene), the Authority said the other producer, Haldia Petrochemical Corporation, has supported the application.

The Authority held, after due deliberations on various parameters having a bearing on dumping and its consequent injury to domestic industry, that the product under probe has been exported to India from the subject countries below associated normal value.

As a result of which, the domestic industry has suffered material injury which is the result of the dumped imports from the subject countries. It said imports from subject countries have increased in absolute terms as well as in relation to total imports, total demand and domestic production in India.

Moreover, it held, market share of the domestic industry has come down over the period of probe from April 1, 2008 to end-December 2008, over and above the fiscal years of 2005-06 2006-07 and 2007-08, while the demand has increased. The prices of the domestic industry have been suppressed despite increase in demand and there is a marked dumping margin from each of the subject countries and also there is a significant underselling from each of the subject countries.

In the case of Oman, while Oman Polypropylene LLC has been exempt from any anti- dumping duty, other exporters/producers of polypropylene from Oman have to fork out $977.67 a tonne.

In the case of Saudi Arabia, National Petrochemical Industrialisation Marketing company/Basell Polyolefin’s Company have been exempt from the proposed provisional anti-dumping duty, other exporters/producers of the subject goods should shell out $820.55 a tonne.

In the case of Singapore, the producer company, Polyolefin Co (Singapore) Pte Ltd, exporting PP through Sumitomo Corporation Asia Pte Ltd, will have to shell out $81.20 a tonne by way of anti-dumping duty.

The same producer exporting PP through Toyota Tsusho (Singapore) Pte Ltd will have to pay $119.32 a tonne, while with another exporter Itochu Plastics Pte Ltd, it may have to pay $472.29 a tonne by way of anti- dumping duty.

However, the same producer firm exporting through Marubeni Chemical Asia, Pacific Ltd attracts no anti-dumping levy.

Exxon Mobil Chemical Asia Pacific both as a producer and exporter would have to pay anti-dumping duty of $44.43 a tonne, while the company attracts no anti-dumping duty when it exports through Mitsubishi Chemical Thailand (Co) Ltd.

Other than the combination of companies specifically mentioned by the Authority, other companies exporting from anywhere the subject goods originating from Singapore would attract a provisional anti-dumping duty of $1,033.65 a tonne in India.

More Stories on : Anti-dumping | Petrochemicals | Reliance Industries Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

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