Mitsubishi Chemicals Corp India Ltd is seeking for an increase in India's antidumping duties on imports of Purified Terephthalic Acid (PTA), considering the existential crises the company is going through. According to a company official, sustained imports of cheap PTA from China into India have been causing the company to suffer losses. Though in July this year, India imposed anti-dumping duties ranging from $23.75-117 per tonne on PTA imports from China, South Korea, Thailand and the European Union but it doesn't seem enough for Mitsubishi Chem India to curb the increasing losses.
User association for PTA in India however, has been opposing the move to further increase the current anti-dumping duties on PTA imports, keeping in view the rising raw material prices. The association gave rational that just few weeks after the imposition of the anti-dumping duties in July, leading PTA producers MCC PTA and Reliance Industries had inflated their prices by Rs.2,100/tonne ($34/tonne).
In its petition to the government, the association cited that total domestic demand for PTA outstrips domestic supplies, forcing polyester manufacturers to depend on imports.The association also claimed that such move could hit companies such as Indo Rama Synthetics, Filatex, JBF and Wellknown, which are facing high raw material costs.
After the imposition of the anti-dumping duty on PTA imports, utilization at India’s polyester yarn manufacturing industry to 63% in September from 69.34% in July – indicating that the industry is not in a position to bear higher costs of imported PTA, the association said. Also, Indian Oil Corporation, which also makes PTA, didn't join RIL or Mitsubishi in demanding an anti-dumping duty.
(This article was published on the website on November 14, 2014)
User association for PTA in India however, has been opposing the move to further increase the current anti-dumping duties on PTA imports, keeping in view the rising raw material prices. The association gave rational that just few weeks after the imposition of the anti-dumping duties in July, leading PTA producers MCC PTA and Reliance Industries had inflated their prices by Rs.2,100/tonne ($34/tonne).
In its petition to the government, the association cited that total domestic demand for PTA outstrips domestic supplies, forcing polyester manufacturers to depend on imports.The association also claimed that such move could hit companies such as Indo Rama Synthetics, Filatex, JBF and Wellknown, which are facing high raw material costs.
After the imposition of the anti-dumping duty on PTA imports, utilization at India’s polyester yarn manufacturing industry to 63% in September from 69.34% in July – indicating that the industry is not in a position to bear higher costs of imported PTA, the association said. Also, Indian Oil Corporation, which also makes PTA, didn't join RIL or Mitsubishi in demanding an anti-dumping duty.
(This article was published on the website on November 14, 2014)
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