Product description – The product under consideration is Linear Alkyl Benzene, or LAB.
HS Code – 3817 00 11.
Uses – The product under consideration serves as a chemical intermediate used to produce linear alkyl benzene sulphonate, which is subsequently utilized in the production of laundry detergents, light-duty dishwashing liquids, industrial cleaning agents, and general household cleaners.
Countries Involved – Iran and Qatar
Applicants – Nirma Limited and Tamilnadu Petroproducts Limited.
Period of investigation – 1st October 2022 to 30th September 2023.
Injury period – 2020-21, 2021-22, 2022-23 and the period of investigation.
Margins and recommended duties:
Country | Producer | Dumping Margin | Injury Margin | Duty |
Iran | Iran Chemical Industries Investment Co. | 0-10% | 0-10% | $14/MT |
Iran | Any other | 0-10% | 0-10% | $54/MT |
Qatar | SEEF Limited | 0-10% | 0-10% | $31/MT |
Qatar | Any other | 0-10% | 0-10% | $62/MT |
Key Findings –
- The application was filed by two producers of like article in the country constituting a major proportion of the total Indian production.
- The Authority determined the normal value, export price and landed price on a quarterly basis to ensure a fair comparison given the significant fluctuations in the prices of raw materials and landed price of subject imports.
- The volume of imports from subject countries has increased in absolute terms as well as in relative terms, while the landed price of subject imports has declined over the injury period.
- The subject imports were undercutting as well as depressing and suppressing the prices of the domestic industry in three quarters of the period of investigation.
- While the market share of the subject countries has increased, the market share of Indian industry including the domestic industry has declined over the injury period. The domestic industry was forced to reduce its prices even below the cost of sales to regain its market share in the period of investigation.
- The profitability and ability to raise investments of the domestic industry have also been adversely affected due to low priced imports from the subject countries at significant volumes. The domestic industry started facing significant losses including cash losses and nil return on investments since 2022-23.
- The dumping margin and injury margin are positive and significant.
- Imposition of anti-dumping duties will have a negligible impact on the downstream industry and is in the larger public interest.