The Designated Authority in the Commerce Ministry has commenced anti-dumping investigation into the import of phthalic anhydride (PAN) from South Korea, Taiwan (Chinese Taipei) and Israel.
PAN is an anhydride of phthalic acid, which is commonly produced by catalytic oxidation of ortho-xylene or naphthalene and is an important chemical intermediate in plastic industry.
An official notification by the Directorate of Anti Dumping & Allied Duties said it is also used in the making of products such as polyester resins, alkyd resins used in paints and lacquers, unsaturated polyester resins, dyes and pigments.
The application asking for initiation of anti-dumping probe is made jointly by IG Petrochemicals Ltd, Mysore Petrochemicals Ltd, Thirumalai Chemicals Ltd and SI Group India Ltd.
While admitting the petition filed by the domestic manufacturers, the Authority said that IG Petrochemicals Ltd and Thirumalai Chemicals Ltd were stated to have imported the subject goods from South Korea under advance licence scheme.
“In view of this and in keeping in view the reasoned position in this regard taken by the Authority in past cases, the Authority does not consider it appropriate to exclude these two entities from the scope of domestic industry at this stage,” it said.
After considering the various parameters that constitute the grounds for dumping, the Authority said various economic yardsticks like the loss in market share, significant decline in the profitability of the domestic industry, significant deterioration in return on investment and cash profit show collectively and cumulatively that the domestic industry suffered material injury on account of dumped imports of the subject goods from the subject countries.
The period of investigation is from January 1, 2010 to December 31, 2010 (twelve months) while the injury investigation would cover the span of 2007-08, 2008-09, 2009-10 and the period of investigation, the Authority said.