Product Description –Resorcinol, which is an intermediate and acts as a compounding agent in the rubber industry. Resorcinol is also known as 1,3-benzenediol; 1,3-dihydroxybenzene; 3-Hydroxyphenol; Resorcin Meta-Dihydroxybenzene.

HS Code – 2907 2100

Uses – Resorcinol is used in tyre production, and as a resin for bonding applications. It is also used as specialized thermosetting wood-adhesive resin, as a UV stabilizer in plastics, in dyes manufacturing, pharmaceuticals, cosmetic preparations and as a flame retardant.

Countries Involved- China and Japan.

Applicant – Atul Limited.

Period of investigation – 1^st April 2023 – 31^st March 2024

Injury Period – 1^st April 2020 – 31^st March 2021, 1^st April 2021 – 31^st March 2022, 1^st April 2022 – 31^st March 2023 and the period of investigation.

Margins and recommended duties –

Country	Producer	Dumping Margin	Injury Margin	Reference Price*
		(%)	(%)	(USD/MT)
China	Zhejiang Hongsheng Chemical Co., Ltd.	25-35	15-25	6244
	Others	35-45	30-40	6244
Japan	Sumitomo Chemical Co.Ltd.	30-40	15-25	6244
	Others	50-60	35-45	6244

*Duty would be difference between USD 6,244 and the landed price.

Key Findings-

1. The product under consideration is Resorcinol, also known as also known as 1,3-benzenediol; 1,3-dihydroxybenzene; 3-Hydroxyphenol; Resorcin Meta Dihydroxybenzene.
2. The product produced by the domestic industry is like article to the product imported from the subject countries.
3. Resorcinol can be produced using Sulphonation-fusion, Hyperoxidation or MPDA hydrolysis process. There is no difference between the end product using any of the technologies.
4. The negligible imports of the domestic industry made for the purpose of research and development from its related entity do not affect its eligibility as the domestic industry.
5. The applicant is the sole producer of the subject goods in India and hence, accounts for entire domestic production in India.
6. The dumping margin quantified by the Authority is positive and significant.
7. As the conditions of cumulation have been met in the present case, the Authority has cumulatively assessed the impact of imports.
8. The domestic industry has suffered material injury due to the dumping of subject goods in India.
9. The demand for the subject goods including and excluding captive consumption has consistently increased over the injury period.
10. The volume of subject imports declined in the period of investigation but remained higher than the base year, showing an overall increase. The decline in imports is due to compromising of profitability by the domestic industry in order to gain market share.
11. The price undercutting from all subject countries is positive and significant.
12. The subject imports have suppressed and depressed the domestic prices, while the costs have increased, the selling price have declined over the injury period.
13. The slight increase in market share of the domestic industry is a result of it being compelled to sell at losses due to low-priced imports.
14. The inventories of the domestic industry increased over the injury period even though the domestic industry sold subject goods at losses.
15. The profitability, cash profit and return on capital employed of the domestic industry have declined over the injury period.
16. The domestic industry has incurred financial losses and cash losses during the period of investigation and recorded a negative return on capital employed during the period of investigation.
17. The EBIDTA of the domestic industry has also declined over the injury period.
18. The injury margin is both positive and significant.
19. The ability of the domestic industry to raise capital investment has been adversely impacted due to dumping in India.
20. The injury margin is positive and significant.
21. The imposition of anti-dumping duty will not be against public interest and will provide a fair playing field to the Indian industry.
22. While demand-supply gap is not a justification for dumping, the imports are, in any case, more than the demand-supply gap in India.
23. While there is a demand-supply gap in India, the current market situation is not conducive for fresh investments.
24. There are only three suppliers of the subject good globally, cessation of domestic production will result in complete dependence of the user industry on imports.
25. Imposition of anti-dumping duty will not restrict imports into India but only ensure that the same are at fair prices.