Chinese dumping concerns rise on PET resins; industry calls for action

Domestic players allege unfair trade by Chinese suppliers like Wankai, urging DGTR to tighten anti-dumping actions to protect India's petrochemical sector

Indian PET resin players have approached the Directorate General of Trade Remedies (DGTR), seeking stringent action against major exporters like Wankai New Materials, a Chinese firm, saying they are engaging in unfair trade practices. 

 

These practices are causing revenue losses for the government and hurting prospects of the domestic industry, said the Forum of PET Manufacturers (FoPM).

 

This comes despite the imposition of an anti-dumping duty from April 2021, and the government imposing an additional anti-absorption duty of $25 per tonne on Wankai from November 2024.

 

According to the FoPM, the Chinese major is misusing its export facility and dumping other Chinese manufacturers’ products, showing it as Wankai’s. Wankai did not respond to questions from Business Standard. 

 

Wankai reportedly has an 87 per cent market share in India’s total PET resin imports.

 

“With the Chinese dumping material, throughput at our plants has to be reduced as supplies are almost at our raw material rates. There is a case of evasion of anti-dumping duty as well by misdeclaring the imports as Wankai material. Any Chinese supplier can use this name and supply goods,” said Sumant Singhal, chief executive officer (CEO) of Chiripal Polyfilms.

 

“Our Forum had detailed discussions with the Directorate of Revenue Intelligence (DRI). The response from DRI was positive, and they are studying the subject and have conveyed that they will take suitable action,” said C K Dhanuka, chairperson of FoPM.

 

In an effort to safeguard the domestic industry, it was in April 2021 that India first introduced anti-dumping duty on Chinese exports of PET resin. This was after imports into India moved up to 250 kilo tonnes per annum (KTA), denting the profits of domestic suppliers.

 

Later, in November 2024, the duty on Wankai was increased to $40.41 per tonne from $15.54 per tonne, citing that Chinese players were dumping PET resin into India at prices significantly below the domestic market rates.

 

According to the industry body, in 2023, Wankai, which had a low rate of duty, started a 1,000 KTA plant in China. It began dumping material into India.

 

During an investigation by DGTR for January-September 2023, it was noted that Wankai actually exported only 30 KTA of the 130 KTA appearing as imports from Wankai. This, the industry body cites as an indication of dumping of other Chinese manufacturers’ products.