The Hindu Business Line : Mid-term review of dumping duty on methylene chloride

THE Designated Authority in the Commerce Ministry has initiated mid-term review of anti-dumping duty imposed on methylene chloride from the European Union, South Africa and Singapore.

Though the authority on its own in terms of its rules reviews from time to time the need for continued imposition of anti-dumping duty, in this case one of the exporters from the EU, Ineos Chlor, has filed a request through the European Commission citing changed circumstances for a mid-term review of the anti-dumping duty in force.

According to the applicant, the condition of injury to the domestic industry has altered substantially requiring a review of the anti-dumping measure in force. It is claimed that in the financial year 2002-03, the production of methylene chloride by Gujarat Alkalies and Chemicals Ltd was 25,481 tonnes.

The applicant contends that though the production has increased only by 1 per cent from 2002-03 to 2003-04, sales have increased 14 per cent from Rs 61.6 crore to Rs 70.2 crore.

The applicant further claims that the installed capacity for methylene chloride had since 2002 remained at 23,760 tonnes and utilisation has been more than 100 per cent as production levels had reached 25,481 tonnes in 2002-03 and 25,684 tonnes in 2003-04. Hence, it is clear that the domestic industry is producing at its peak and is not suffering from under-utilisation of capacity.

The applicant further contends that the demand for methylene chloride in India is approximately 57,000 tonnes per annum, but current annual production levels for the domestic manufacturers (Gujarat Alkalies Ltd, Chemplast Sanmar and SRF Ltd) lie at approximately 30,000 tonnes. To meet the rising demand, the user industry in India is obliged to import methylene chloride, despite the fact that the anti-dumping duty is in force. The domestic producers have not increased their capacity in spite of growing consumption, which suggests that there are elements other than imports, which are impeding the domestic industry from expanding their production.

According to the applicant, the prices on the market for the subject goods have doubled since the period of probe. At the time of imposition, prices were in the range of $270-350 a tonne and now they have risen to $650per tonne.

The applicant notes that these high prices would show that the domestic industry is not suffering any injury on account of dumping. It has been informed that the average export price to India for methylene chloride during 2004 was $655 per tonne for packed product and $611 for bulk products.

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