India imposes anti-dumping duty on PVC Paste resin imports from China and five other nations

India has imposed an anti-dumping duty (ADD) of up to US$ 707 per tonne on imports of polyvinyl chloride (PVC) paste resin from China and five other countries, including Korea, Malaysia, Norway, Taiwan, and Thailand. This measure aims to protect the interests of domestic producers and prevent the use of substandard plastic raw materials in downstream industries. The ADD, initially levied for five years unless revoked earlier, is intended to shield domestic manufacturers from injury as identified by investigating authorities and claimed by local producers.

A notification from India’s Finance Ministry, dated March 21, 2025, states, “The Central Government has imposed provisional anti-dumping duty on Polyvinyl Chloride Paste Resin falling under the relevant tariff items of the Customs Tariff Act, originating in or exported from China PR, Korea RP, Malaysia, Norway, Taiwan, and Thailand, and imported into India. The designated authority confirmed that PVC paste resin exported to India from these countries is being dumped at below-market prices, causing material injury to the domestic industry.”

Levy amount
According to the notification, PVC paste resin originating from China and manufactured by any producer other than Shenyang Chemical Co. Ltd, and exported from anywhere, will attract the highest ADD of US$ 707 per tonne. However, PVC paste resin manufactured by Shenyang Chemical Co. Ltd will be subject to an ADD of US$ 248 per tonne. Similarly, goods produced in any other country, originating from anywhere other than China, Korea, Malaysia, Taiwan, Thailand, and Norway, and exported from China, will also attract an ADD of US$ 707 per tonne.

PVC paste resin exported from Malaysia, whether produced by local manufacturers or any other producer globally, will attract an ADD of US$ 516 per tonne. Imported goods from Korea have been subjected to an ADD of US$ 89 per tonne, while imports from Taiwan fall within the range of US$ 247–373 per tonne. Imports from Thailand will face an ADD between US$ 343–421 per tonne, and producers or exporters from Norway will need to pay an ADD of US$ 495 per tonne for their PVC paste resin exports to India.

An industry exporter commented, “The ADD levy will provide much-needed relief to domestic producers who have been suffering due to massive dumping from China, Korea, and several other countries. Although the levy is expected to slightly increase prices in the domestic market, the demand for PVC paste resin from downstream industries is strong enough to absorb the potential price hike. The surge in prices may have a temporary negative impact on downstream industries and, eventually, consumers.”

The notification exempts certain products from the scope of the ADD. Exemptions include PVC paste resin with a K-value below 60,000, PVC blending resin, copolymers of PVC paste resin, battery separator resins, and Biovyn produced from renewable or bio-based feedstock and accompanied by acceptable proof of sustainability.

Source: Directorate General of Foreign Trade (DGTR), Government of India

DGTR recommendations
The Directorate General of Trade Remedies (DGTR), under India’s Ministry of Commerce and Industry, has recommended the imposition of provisional anti-dumping duty on imports of PVC paste resin originating in and exported from the aforementioned countries. In its findings, the DGTR, acting as the designated authority, concluded that PVC paste resin has been exported to India at prices below the normal value by certain players in six countries: China, Korea, Malaysia, Norway, Taiwan, and Thailand.

Anti-dumping investigations are initiated based on complaints filed by domestic producers alleging material injury caused by imported goods sold at prices lower than the prevailing rates in local markets. These investigations also assess whether domestic industries have been adversely affected by a surge in cheap imports. As a countermeasure, duties are imposed under the multilateral framework of the Geneva-based World Trade Organization (WTO).

The purpose of the anti-dumping duty is to ensure fair trading practices and create a level playing field for domestic producers in comparison to their foreign counterparts. India has already imposed anti-dumping duties on several products to address the issue of cheap imports from various countries, including China.

The complainant
The investigation was initiated based on a complaint filed by Chemplast Sanmar Ltd, a leading producer of PVC paste resin. The company has a production capacity of 66,000 tonnes per annum at its Mettur facility in Tamil Nadu and 41,000 tonnes per annum at its Cuddalore facility in Tamil Nadu. However, the company has been facing prolonged margin pressures due to dumping from the European Union, Japan, and other regions. Production of PVC paste resin at the new Cuddalore facility is currently ramping up.

A post-results analysts' briefing from Chemplast Sanmar reads, “Demand for PVC paste resin has been strong, with a 13% growth in the country during the first nine months of April–December 2024, on a year-on-year basis. The provisional anti-dumping duty on paste resin announced on June 13, 2024, initially provided some relief by addressing dumping from China, Thailand, and Taiwan. However, this benefit was soon offset by an increase in import volumes from Europe at very low prices.”

Ramkumar Shankar, Managing Director of Chemplast Sanmar Ltd, said, “The last couple of years have been challenging for the company due to the dumping of products, particularly suspension and paste PVC, which has exerted significant pressure on margins. The dumping of suspension PVC from China and paste PVC from the European Union has created pricing headwinds, impacting our profitability. Nevertheless, domestic demand has remained robust, with apparent consumption of suspension PVC growing by 11 percent year-on-year during the nine-month period from April to December 2024, while paste PVC registered a 13 percent growth over the same period.”

The provisional duty on paste PVC has already been notified for imports from China, Taiwan, Thailand, and Norway. However, shortly after its implementation, dumping from the European Union and Japan began, undermining the intended benefits of the duty. Unfortunately, the Government of India has not yet extended the anti-dumping duty to include imports of PVC paste resin from the European Union and Japan.


DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com