Final Finding issued recommending imposition of anti-dumping duties on the imports of “Phthalic Anhydride (PAN)” from China PR, Indonesia, Korea RP and Thailand (19.05.2021)

Product Description – Phthalic Anhydride (PAN) is an anhydride of Phthalic Acid and is commercially produced by catalytic oxidation of Ortho-xylene or Naphthalene. It is a colorless solid, variously referred as Phthalic Anhydride flakes, Phthalic Anhydride (98% min.), Phthalic Acid Anhydrous, Phthalic Anhydride (99.8% min), etc. Specifications of Phthalic Anhydride includes its physical appearance, color of solid flakes, color of molten product, solidification point, Phthalic Anhydride content by weight, other anhydrides & organic impurities’ content by weight and acidity index.

HS Code – 29173500.

Uses – The product is used to produce Phthalate esters, which function as plasticizers and hence are an important chemical intermediate in plastic industry.

Country Involved – China PR, Indonesia, Korea RP and Thailand

Date of Initiation – 21st May 2020

Period of Investigation – April 2019 to March 2020.

Injury Period – April 2016 to March 2017, April 2017 to March 2018, April 2018 to March 2019 and the POI.

Final Findings – 19th May 2021

Dumping Margin, Injury Margin, Proposed Duty

The following exporter specific dumping margin, injury margin and proposed duty has been determined by the Designated Authority.

SN Country Producer Dumping Margin Range (%) Injury Margin Range (%) Proposed Duty (USD/MT)
1 China PR Any 20-30 0-10 40.08
2 Indonesia PT. Petrowidada 0-10 0-10 59.83
Any other 10-20 10-20 90.11
3 Korea RP Aekyung Petrochemical 0-10 0-10 41.26
Hanwha Solution Corporation 0-10 0-10 41.64
Any other 20-30 10-20 140.17
4 Thailand Continental Petrochemicals Co Limited 10-20 0-10 63.06
Any other 20-30 10-20 134.91

Key Findings

  1. Dumping margin is above de-minimis for all the participating producers and the subject countries.
  2. Raystar Corporation, Korea RP has filed an incomplete response. The Authority has therefore, rejected the response filed by it.
  3. Domestic industry has suffered material injury.
  4. Injury to the domestic industry has been caused due to dumped imports form the subject countries.
  5. Due to dumping of subject goods in India, the domestic industry was forced to export at significantly low and unremunerative prices.
  6. Factors such as no quantification of adverse impact of duties by the interested parties, significant capacity expansions in the country which will ensure no demand and supply gap, inter-se competition between Indian producers, and absence of any evidence of adverse impact of anti-dumping duties imposed in the past on the subject goods reasonably demonstrates that imposition of duties will not be against public interest.