Initiation of anti-dumping investigation into imports of Caustic Soda from Japan, Iran, Qatar and Oman (17.12.2020)

Product description – Caustic Soda in all forms, also known as NaOH or Sodium Hydroxide

HS Codes – 28151101, 28151102 and 28151200.

Uses – Caustic Soda is widely used in diverse industrial sectors, either as raw material or auxiliary chemical, to produce pulp and paper, newsprint viscose yarn, staple fibre, aluminium, cotton, textiles, toiled and laundry soaps, detergent, dyestuffs, drugs and pharmaceuticals, petroleum refining, etc.

Countries involved – The present investigation involves producers and exporters from Japan, Iran, Qatar and Oman.

Applicants – Alkali Manufacturers Association of India (AMAI) on behalf of its members, with DCW Limited, Grasim Industries Limited, Gujarat Alkalies and Chemicals Limited and SIEL Chemical Complex constituting domestic industry.

Period of investigation – 1st October, 2019 – 30th September, 2020.

Injury period – April 2017- March 2018, April 2018- March 2019, April 2019- March 2020 and the period of investigation.

Past investigations involving the product – The product under consideration has been subject to multiple anti-dumping investigations in the past. Duties were first imposed on caustic soda imported from Saudi Arabia, Iran, Japan, USA and France in 2000, and thereafter on China PR, Korea RP and Qatar in 2002. The product has also attracted duties when imported from Chinese Taipei, Indonesia, European Union, Thailand and Norway. The duties continued to remain in force for some time with the duty against imports from China PR and Korea RP expiring in November 2020. At present, there is no anti-dumping duty on imports of caustic soda.

Facts of the present case – The present application was filed pursuant to significant increase in dumped imports of Caustic Soda from Japan, Iran, Qatar and Oman. The applicants demonstrated that the imports had suppressed and depressed the prices of the domestic industry and were undercutting its prices. This had adversely impacted the performance of the domestic industry in terms of its profits, sales, market share, cash flow and return on investment. The DGTR has found sufficient prima facie evidence of dumping, injury and causal link, warranting initiation of investigation.