Final findings issued recommending imposition of anti-dumping duty on imports of Phthalic Anhydride (PAN) from Russia (05.01.2021)

Product description – Phthalic Anhydride (PAN) is an anhydride of Phthalic Acid and is commercially produced by catalytic oxidation of Ortho-xylene or Napthalene. 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, colour of molten product, solidification point, Phthalic Anhydride content by weight, other anhydrides and organic impurities’ content by weight and acidity index. 

HS Codes – 29173500

Uses – Used in production of phthalate esters, which functions as plasticizers. It is an important chemical intermediate in plastic industry. It is also used in making of the products like polyester resins, alkyd resins used in paints and lacquers, unsaturated polyester resins polyester polyols, dyes and pigments, halogenated anhydrides, polyetherimide resins, isatonic anhydride, insect repellants etc.

Country involved – Japan and Russia   

Applicants – M/s IG Petrochemicals Limited, M/s Thirumalai Chemicals Limited and M/s SI Group India Private Limited

Date of initiation – 11th May 2020.

Period of investigation – April 2019 to March 2020

Injury period – 2016-2017, 2017-2018, 2018- 2019 and the period of investigation.

Margins and proposed duty –

SN Country of Origin Country of Export Producer Duty amount as a % of CIF
1 Russia Any Country including Russia Any 159.43 MT/US$
2 Any country other than Russia Russia Any 159.43 MT/US$

Key findings –

  1. There is continued dumping of subject goods from subject countries.
  2. The domestic industry has suffered injury.
  3. Factors such as volume of imports over injury period, domestic consumption in Japan, the capacity utilisation of the Japanese producers over the period, show no likelihood of injury to the domestic industry in case the ADD in force on imports from Japan is allowed to cease.
  4. Factors such as positive price undercutting, excess production over demand, idle production capacities in Russia, price attractiveness of Indian market, third country dumping show likelihood of dumping and injury to the domestic industry in case the ADD in force on imports from Russia is allowed to cease.
  5. Factors such as significant capacity expansions in the country which will remove demand-supply gap, inter-se competition among Indian producers show that there may not be adverse effect of duties to the consumers or downstream industry.