India launches anti-dumping probe into polyethylene imports from 6 nations

A notification by Directorate General of Trade Remedies mentions prima facie evidence of Linear Low-Density Polyethylene being dumped into India by exporters from the six countries

The Directorate General of Trade Remedies, under the Ministry of Commerce and Industry, has initiated an anti-dumping investigation into imports of Linear Low-Density Polyethylene (LLDPE) from six countries: Kuwait, Malaysia, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.

 

The investigation follows an application filed by the Chemicals and Petrochemicals Association of India (CPMA), representing Haldia Petrochemicals Limited (HPL) and HPCL-Mittal Energy Limited (HMEL), and supported by Reliance Industries Limited. The application alleges that LLDPE originating in or exported from the subject countries has caused material injury to the domestic industry.

 

According to the Directorate General of Trade Remedies notification dated June 30, “There is prima facie evidence that the product under consideration is being dumped into the Indian market by the exporters from the subject countries.”

 

‘Like article, suppressing price’ 

LLDPE, a copolymer of ethylene used primarily in plastic processing industries. The applicant contends that imported LLDPE is comparable to domestically produced material in terms of physical and chemical properties, uses, and marketability, and should be treated as a ‘like article’ for the purpose of investigation.

 

The applicant mentioned that LLDPE is being exported to India at prices below the constructed normal value, which is based on domestic cost estimates adjusted for administrative expenses and a reasonable profit. It also highlighted that the subject goods are suppressing domestic prices, leading to declining profitability despite increased market share. The increase, the applicant noted, is attributed to the commencement of HMEL’s production in August 2023.

 

The notification concludes: “The authority hereby initiates an anti-dumping investigation to determine the existence, degree and effect of the dumping with respect to the product under consideration”.

If the investigation finds the allegations to be true, then the Directorate General of Trade Remedies will recommend an anti-dumping against the same. The Ministry of Finance, however, takes the final decision on the duty to be levied.

Last week, India also imposed anti-dumping duties on plastic processing machinery imported from China and Taiwan, ranging between 27 to 63 per cent.