Initiation of anti-dumping investigation concerning imports of Mono Ethylene Glycol or MEG from Kuwait, Saudi Arabia, and USA (28.06.2021)

Product under consideration – Mono Ethylene Glycol, also known as MEG or Ethylene Glycol.

HS Code – 2905 3100

Uses – Mono Ethylene Glycol is used as chemical intermediate in the production of polyester fibers, polyester films, and resins, including polyethylene terephthalate (PET), in the fibre treatment of textiles, paper industry, in adhesives inks, cellophane and as a dehydration agent in the natural gas pipelines.

Countries involved – Kuwait, Saudi Arabia and USA.

Applicants – India Glycols Limited and Reliance Industries Limited

Period of Investigation – 1st January 2020 to 31st December 2020

Injury Period – 2017-18, 2018-19 and 2019-20 and the period of investigation.

Facts of the present case – There is a particular market situation in Saudi Arabia and Kuwait, wherein raw material is available at distorted prices. The Government of Saudi Arabia has fixed the price of the raw material, ethane, and the prices are not governed by free market forces. Accordingly, the producers of MEG in Saudi Arabia have access to ethane at a distorted, government-regulated rate.

The present application was filed pursuant to the increase in dumped imports over the injury period. The imports from subject countries suppressed and depressed the prices of the domestic industry and were undercutting its prices. This adversely impacted the performance of the domestic industry in terms of its profits, cash profits and returns which declined over the period. There also exists threat of further injury due to existence of freely disposable and underutilized capacities in subject countries, significant capacity expansions, high export orientation of producers in subject countries and imports at prices that suppressed and depressed the prices of the domestic industry.