The Hindu Business Line : Dumping duty proposed on propylene glycol imports

THE Designated Authority in the Commerce Ministry has recommended imposition of definitive anti-dumping duty on imported propylene glycol from the European Union, Singapore, Korea and the US.

Propylene glycol is manufactured by the reaction of the propylene oxide with water at high temperature and pressure.

The resultant product is widely used for industrial applications such as manufacture of polyester resin, industrial anti-freezing applications and in pharmaceutical industries.

In its final findings, the authority held that the subject goods have been exported to India from the EU, the US, Korea and Singapore below its normal value and the domestic industry has suffered material injury. The injury has been caused cumulatively by the dumped imports from the subject countries.

Accordingly, it has been proposed to recommend imposition of final anti-dumping duty, which would be the difference between $1,221.38 and the landed value per tonne from firms of the EU, US and Korea.

In the case of firms from Singapore, the definitive anti-dumping duty would be the difference between $1,019.13 and the landed value per tonne from any exporter and more specifically from SEPL, Singapore the duty would be the difference between $991.32 and the landed value per tonne.

The authority said that it obtained a written petition from Manali Petrochemicals Ltd, Chennai, contending import of subject goods from the EU, US, Korea and Singapore causing material injury to its operation, rendering it unviable.

During the probe, the authority found that the volume of imports of the product under consideration from subject countries into the domestic market increased by 52 per cent. It further found that the sales by the sole domestic manufacturer in the domestic market rose by 17.83 per cent in terms of volume, but in terms of value the per unit realisation had a significant decline, with the market share of the company plunging more than 8 per cent during the period of investigation. The sales price reduced by 8.64 per cent during 2000-01 to 2001-02 and by 2.54 per cent from 2001-02 to 2002-03. As such, the Authority held that the domestic industry has suffered material injury on account of dumped imports from subject countries.

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