Product description – The product under consideration is Flexible Slabstock Polyol with molecular weight 3000-4000.

HS Code –3907 2910 and 3907 2990

Uses – The product under consideration is used in manufacturing of polyurethane foam which is majorly used in mattresses and can be used for upholstery, pillows, bolsters, transport seating and packaging.

Country Involved – Saudi Arabia

Applicant – Manali Petrochemicals Limited

Period of investigation – 1^st October 2023 to 30^th September 2024

Injury period – 2021-22, 2022-23, 2023-24 and the period of investigation

Margins and recommended duties –

Key findings – 

1. The product under consideration is Flexible Slabstock Polyol having molecular weight 3000-4000. The product produced using KOH and DMC technology have similar technical properties and can be used interchangeably.
2. The applicant accounts for 100% of the Indian production and constitutes domestic industry as defined under the Anti-dumping Rules.
3. The Authority rejected other parties’ claim that the applicant is misusing trade remedial measure since each investigation is conducted and duties are recommended after examining dumping, injury and causal link in detail.
4. The exporters in the subject countries are dumping the product under consideration in the Indian market and such dumped imports caused material injury to the domestic industry.
5. The volume of subject imports increased in absolute terms and in relative terms over the injury period, declining only marginally in the period of investigation.
6. The subject imports were significantly undercutting the domestic prices, and had a depressing and suppressing effect on domestic prices, forcing the domestic industry to reduce its price below its costs.
7. The mark-up of landed price over raw material costs declined significantly and was negative during the period of investigation.
8. The domestic industry faced significant idling of capacities, decline in market share, leading to increased inventories.
9. The domestic industry suffered significant losses, cash losses and recorded negative returns on its capital employed.
10. Injury to the domestic industry was not caused by any other known factor including imports from other countries, lack of backward integrated plants, use of obsolete technology, depreciation burdens or impact of shutdown due to cyclone.
11. There is likelihood of continuation of dumping and injury in the event of cessation of current anti-dumping duties.
12. Despite duties in places, the exporters have continued to dump the subject goods, and the volume of dumped imports has increased continuously.
13. The volume of exports from Saudi Arabia to India has increased a rate higher than exports to other countries.
14. The domestic industry has continued to face injury despite duties in force.
15. Imposition of anti-dumping duties is in the larger public interest.
16. Imposition of duties would not have any adverse impact on the downstream users as FSP constitutes miniscule share in the cost of mattress and would marginally increase the prices.
17. The existence of demand-supply gap does not justify dumping of subject goods
18. Imposition of duties is essential to protect the huge investment being made by Manali Petrochemicals Limited to expand capacities and to bridge the demand-supply gap.