China's PVC Exports to India Face Major Blow! Preliminary Anti-Dumping Duty Reaches $167/ton

According to relevant data, India's PVC imports hit a record high in 2023, reaching more than 3.2 million tons. Among them, the total amount of PVC exported from China to India is 1,092,900 tons, accounting for 48.07% of China's total domestic exports, but also accounted for 34.15% of India's total imports. From the current temporary tax rate, the amount of PVC exported to India may be reduced due to the impact of price competition. However, considering the strong demand in the Indian market, more than half of the import dependence, and the temporary difficulty in finding an alternative to the Chinese source of goods, even if the price of Chinese products is slightly higher, under the premise of excluding BIS policy restrictions, PVC exports to the Indian market still has the possibility of growth.

The General Directorate of Trade Remedies of India has announced preliminary rates of anti-dumping duties on PVC products from various countries in a move aimed at protecting the domestic market from unfair trade practices. Prior to the official release of the final findings, the Indian authorities decided to seek comments and feedback from all interested parties within 30 days of the announcement.

The preliminary tax rate is based on anin-depth analysis of the magnitude of dumping and the magnitude of estimated damages in the Indian market, taking into account the current Indian customs tariff rules.PVC products made in Japan may face taxes of $54 to $147 per ton; Korean PVC products may face taxes of $51 to $161 per ton; PVC products made in Indonesia may face a tax of $61 to $200 per ton; PVC products made in Taiwan could face taxes of $25 to $163 per ton; PVC products made in the United States may face a tax of $164 to $339 per ton.

The minimum spread of anti-dumping duties will be increased by more than US $30 / ton, which may force Chinese PVC exporters to lower export prices to remain competitive in the Indian market. In the market competition, the supply of goods in China and the United States will face an unfavorable situation.

In addition, India's BIS policy restricts production companies that are not BIS certified and has not yet processed BIS license applications from Chinese producers. As a result, domestic exporters face difficulties in obtaining certification, and Indian buyers tend to purchase certified sources. As a result, restrictions in the BIS policy may lead to a reduction in PVC exports to India by the end of the year.

In 2023, India's PVC imports reached a record high of more than 3.2 million tons. The total amount of PVC exported from China to India is 1,092,900 tons, accounting for 48.07% of China's total domestic exports, but also accounted for 34.15% of India's total imports. Although the temporary tax rate may affect the amount of PVC exported from China to India, considering the strong demand in the Indian market, more than half of the import dependence, and the temporary difficulty in finding alternative sources of Chinese goods, PVC exports to the Indian market still have the possibility of growth.

Specific to the individual manufacturers, the Chinese mainland's Pingxinfa Polyvinyl Chloride Co., Ltd. and Pingxinfa Huaxing Chemical Co., Ltd. may face an anti-dumping duty of $125 / ton, while Tianjin Bohua Chemical Development Co., Ltd. may face a tax of $82 / ton. Indonesia's PT.Asahimas Chemical and PT.TPC Indo Plastic and Chemicals could face taxes of $73 / ton and $61 / ton. Japan's Jongbuchi and Shin-etsu could face taxes of $54 / ton and $73 / ton respectively. South Korea's LG Chem could face a tax of $51 per ton, while Hanwha does not. China General Plastics of Taiwan and China Huaxia of Taiwan could face a tax of $25 / ton, while Formosa Plastics could face a tax of $74 / ton. Thai Plastics and Chemicals Plc in Thailand. And AGC Vinythai Public Company Limited may face taxes of $53 / ton and $80 / ton. Westlake Chemical (including Westlake affiliated companies) and Shin-etsu in the United States may face taxes of $164 / ton and $104 / ton. Other businesses not listed could face higher tax rates.