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Antidumping duty on PTA to hurt polyester industry: Indo Rama Synthetics

The company says the move will adversely affect the performance of textile industry, while benefit only the integrated polyester player (ie Reliance Industries)

BS B2B Bureau  |  Gurgaon, Haryana 

Polyester yarn image via Shutterstock.

The recent notification by under Preliminary findings recommending the imposition of provisional antidumping on imports of purified terephthalic acid (PTA) will have adverse impact of and textile industry, the major user of PTA, in India, according to (India) Ltd.
 
The notification, dated June 19, 2014, has recommended the imposition of provisional antidumping on imports of from countries such as China, Korea, Thailand and European Union varying from as high as $117.09 per metric tonne (MT) to a low of $ 19.05/MT on the petition filed by Ltd and MCC India Corporation.
 
said, “It seems that recommendation to impose is done in hurry without understanding and proper calculations as the margin from para xylene (PX) to is hardly $100/MT and with duties $ 62.82 on China, $ 117.09 on Korea and in other cases $ 99.51 to other producers category of Thailand, highly impacting the chain.”
 
It is to bring to attention that domestic players have already started charging $30 -$40 per MT additional over FOB prices in view of the provisional thereby increasing the cost of which is not healthy for the downstream industry.
 
“The various pleas and representation raised by producers of and filament, associations like FICCI, PHD, CII, CITI, Indian Spinners Association, user association, STRETPC had not made any impact on the authorities. It is needless to say that any on will not only increase the cost of poor man’s fabric and at the same time will go against the growth of industry,” said (India) Ltd in a press release.
 
The move will hurt the positive sentiments in textile industry and players like (India) Ltd, Filatex, JBF, Wellknown, etc, will be negatively affected by higher cost of PTA, a major raw material of and For one MT of production, around 85% of is used. The producers import fair quantity of as there is a gap in demand-supply. “The only beneficiary of imposition in India looks to be largest and integrated player and this move will kill the competition in the industry, unfair to Indian consumers,” the press release added.
 
The Indian producers are already at $ 100 cost disadvantage which comprises of around $ 50 because of custom duty of 5% and $ 35-40 as freight differential and $ 10 /MT as other levies like port handling charges etc. In view of this there is no justification of “It may be noted that there are no integrated players except Ltd and this move will solely benefit Reliance Industries Ltd, the major producer of The Indian industry will become less competitive to the extent of value. As manufacturing cost will go up after imposition, it is seen as a setback to the exports of synthetic fibre, yarns, and readymade garments,” said the press release.
 
The downstream industry will suffer a lot as cost of product in the entire value chain will go up making it uncompetitive for domestic and exports market. The export target of $ 60 billion is likely to be affected by this untimely and undesired move.
 
“On Page 60 of the notification it is mentioned under Para 95 (d) – Development in Technology that ‘None of the interested parties have furnished any evidence to demonstrate significant changes in technology that could have caused injury to the domestic industry’. If this is the case so then how RIL is putting up a 2.4 million tonnes plant in India. There have been technology changes resulting in bigger and economical viable plants leading to such large scale projects,” argues in the release.
 
A reasonable protection is already provided to industry by allowing zero custom duty on PX and 5% custom duty on In addition to above, this on is highly detrimental to the industry which is currently working on 60-70% utilisation due to lack of supply. The imposition will further brings down the utilisation rate and it can result in closure of the some of the units leading to unemployment.
 
It will further add to the financial burden to the existing producers who are already facing a crunch in capital working, unable to clear the debts and with hardly any margins, any will further add to the woes of Indian Industry. “The recommendation of provisional on is not a healthy sign for industry and in general for overall textile industry. The provisional is uncalled for and will be a deathblow to over 20,000 small and medium and its products manufacturing units in the country,” said the release.

First Published: Wed, June 25 2014. 16:39 IST
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Antidumping duty on PTA to hurt polyester industry: Indo Rama Synthetics

The company says the move will adversely affect the performance of textile industry, while benefit only the integrated polyester player (ie Reliance Industries)

The company says the move will adversely affect the performance of textile industry, while benefit only the integrated polyester player (ie Reliance Industries) The recent notification by under Preliminary findings recommending the imposition of provisional antidumping on imports of purified terephthalic acid (PTA) will have adverse impact of and textile industry, the major user of PTA, in India, according to (India) Ltd.
 
The notification, dated June 19, 2014, has recommended the imposition of provisional antidumping on imports of from countries such as China, Korea, Thailand and European Union varying from as high as $117.09 per metric tonne (MT) to a low of $ 19.05/MT on the petition filed by Ltd and MCC India Corporation.
 
said, “It seems that recommendation to impose is done in hurry without understanding and proper calculations as the margin from para xylene (PX) to is hardly $100/MT and with duties $ 62.82 on China, $ 117.09 on Korea and in other cases $ 99.51 to other producers category of Thailand, highly impacting the chain.”
 
It is to bring to attention that domestic players have already started charging $30 -$40 per MT additional over FOB prices in view of the provisional thereby increasing the cost of which is not healthy for the downstream industry.
 
“The various pleas and representation raised by producers of and filament, associations like FICCI, PHD, CII, CITI, Indian Spinners Association, user association, STRETPC had not made any impact on the authorities. It is needless to say that any on will not only increase the cost of poor man’s fabric and at the same time will go against the growth of industry,” said (India) Ltd in a press release.
 
The move will hurt the positive sentiments in textile industry and players like (India) Ltd, Filatex, JBF, Wellknown, etc, will be negatively affected by higher cost of PTA, a major raw material of and For one MT of production, around 85% of is used. The producers import fair quantity of as there is a gap in demand-supply. “The only beneficiary of imposition in India looks to be largest and integrated player and this move will kill the competition in the industry, unfair to Indian consumers,” the press release added.
 
The Indian producers are already at $ 100 cost disadvantage which comprises of around $ 50 because of custom duty of 5% and $ 35-40 as freight differential and $ 10 /MT as other levies like port handling charges etc. In view of this there is no justification of “It may be noted that there are no integrated players except Ltd and this move will solely benefit Reliance Industries Ltd, the major producer of The Indian industry will become less competitive to the extent of value. As manufacturing cost will go up after imposition, it is seen as a setback to the exports of synthetic fibre, yarns, and readymade garments,” said the press release.
 
The downstream industry will suffer a lot as cost of product in the entire value chain will go up making it uncompetitive for domestic and exports market. The export target of $ 60 billion is likely to be affected by this untimely and undesired move.
 
“On Page 60 of the notification it is mentioned under Para 95 (d) – Development in Technology that ‘None of the interested parties have furnished any evidence to demonstrate significant changes in technology that could have caused injury to the domestic industry’. If this is the case so then how RIL is putting up a 2.4 million tonnes plant in India. There have been technology changes resulting in bigger and economical viable plants leading to such large scale projects,” argues in the release.
 
A reasonable protection is already provided to industry by allowing zero custom duty on PX and 5% custom duty on In addition to above, this on is highly detrimental to the industry which is currently working on 60-70% utilisation due to lack of supply. The imposition will further brings down the utilisation rate and it can result in closure of the some of the units leading to unemployment.
 
It will further add to the financial burden to the existing producers who are already facing a crunch in capital working, unable to clear the debts and with hardly any margins, any will further add to the woes of Indian Industry. “The recommendation of provisional on is not a healthy sign for industry and in general for overall textile industry. The provisional is uncalled for and will be a deathblow to over 20,000 small and medium and its products manufacturing units in the country,” said the release.
image
Business Standard
177 22

Antidumping duty on PTA to hurt polyester industry: Indo Rama Synthetics

The company says the move will adversely affect the performance of textile industry, while benefit only the integrated polyester player (ie Reliance Industries)

The recent notification by under Preliminary findings recommending the imposition of provisional antidumping on imports of purified terephthalic acid (PTA) will have adverse impact of and textile industry, the major user of PTA, in India, according to (India) Ltd.
 
The notification, dated June 19, 2014, has recommended the imposition of provisional antidumping on imports of from countries such as China, Korea, Thailand and European Union varying from as high as $117.09 per metric tonne (MT) to a low of $ 19.05/MT on the petition filed by Ltd and MCC India Corporation.
 
said, “It seems that recommendation to impose is done in hurry without understanding and proper calculations as the margin from para xylene (PX) to is hardly $100/MT and with duties $ 62.82 on China, $ 117.09 on Korea and in other cases $ 99.51 to other producers category of Thailand, highly impacting the chain.”
 
It is to bring to attention that domestic players have already started charging $30 -$40 per MT additional over FOB prices in view of the provisional thereby increasing the cost of which is not healthy for the downstream industry.
 
“The various pleas and representation raised by producers of and filament, associations like FICCI, PHD, CII, CITI, Indian Spinners Association, user association, STRETPC had not made any impact on the authorities. It is needless to say that any on will not only increase the cost of poor man’s fabric and at the same time will go against the growth of industry,” said (India) Ltd in a press release.
 
The move will hurt the positive sentiments in textile industry and players like (India) Ltd, Filatex, JBF, Wellknown, etc, will be negatively affected by higher cost of PTA, a major raw material of and For one MT of production, around 85% of is used. The producers import fair quantity of as there is a gap in demand-supply. “The only beneficiary of imposition in India looks to be largest and integrated player and this move will kill the competition in the industry, unfair to Indian consumers,” the press release added.
 
The Indian producers are already at $ 100 cost disadvantage which comprises of around $ 50 because of custom duty of 5% and $ 35-40 as freight differential and $ 10 /MT as other levies like port handling charges etc. In view of this there is no justification of “It may be noted that there are no integrated players except Ltd and this move will solely benefit Reliance Industries Ltd, the major producer of The Indian industry will become less competitive to the extent of value. As manufacturing cost will go up after imposition, it is seen as a setback to the exports of synthetic fibre, yarns, and readymade garments,” said the press release.
 
The downstream industry will suffer a lot as cost of product in the entire value chain will go up making it uncompetitive for domestic and exports market. The export target of $ 60 billion is likely to be affected by this untimely and undesired move.
 
“On Page 60 of the notification it is mentioned under Para 95 (d) – Development in Technology that ‘None of the interested parties have furnished any evidence to demonstrate significant changes in technology that could have caused injury to the domestic industry’. If this is the case so then how RIL is putting up a 2.4 million tonnes plant in India. There have been technology changes resulting in bigger and economical viable plants leading to such large scale projects,” argues in the release.
 
A reasonable protection is already provided to industry by allowing zero custom duty on PX and 5% custom duty on In addition to above, this on is highly detrimental to the industry which is currently working on 60-70% utilisation due to lack of supply. The imposition will further brings down the utilisation rate and it can result in closure of the some of the units leading to unemployment.
 
It will further add to the financial burden to the existing producers who are already facing a crunch in capital working, unable to clear the debts and with hardly any margins, any will further add to the woes of Indian Industry. “The recommendation of provisional on is not a healthy sign for industry and in general for overall textile industry. The provisional is uncalled for and will be a deathblow to over 20,000 small and medium and its products manufacturing units in the country,” said the release.

image
Business Standard
177 22