Sunset review investigation concerning imports of Normal Butanol originating in or exported from European Union, Malaysia, Singapore, South Africa and United States of America (30.03.2021)

Product Description– Normal Butanol (abbreviated as ‘NBA’) is a primary alcohol with a 4-carbon structure and molecular formula C4H9OH. It is an excellent solvent for acid-curable lacquers and baking finishes derived from urea, melamine or phenolic resins.

HS Code– 29051300.

Uses – A large part of NBA is converted into derivatives for use as solvents in coating industries and printing inks. Also used as extractant in production of drugs and natural substances, additive in polishes and cleaners, solubilizer in textile industry, additive in deicing fluids, anti-icing additive in gasoline, humectant for cellulose nitrate, feedstock in the production of Butyl mono Carboxylates, Butyl Acetate, Butyl butyrate.

Countries involved– European Union, Malaysia, Singapore, South Africa and United States of America.

Applicant– M/s Andhra Petrochemicals Limited

Date of imposition of original duty – 13th April, 2016 with duties expiring on 12th April 2021

Date of initiation– 31st August 2020

Period of investigation– April 2019 – March 2020

Injury Period – April 2016 – March 2017, April 2017 – March 2018, April 2018 – March 2019 and period of investigation.

Margins and proposed duty

SN Particulars Dumping margin Injury margin Proposed duty $/MT
1 European Union 20-30% 0-10% 46.37
2 Malaysia      
a) BASF Petronas Chemicals Sdn. Bhd. 0-10% 20-30% 26.59
b) Petronas Chemicals Derivatives Sdn. Bhd. 30-40% 20-30% 51.42
c) Any other 30-40% 30-40% 149.31
3 South Africa 30-40% 10-20% 13.24
4 Singapore 10-20% 10-20% 35.66
5 United States of America 30-40% 10-20% 24.16

Key findings 

  1. Authority has found continued dumping from all the subject countries.
  2. Even after imposition of duties, performance of the domestic industry has been impacted in the period of investigation.
  3. Significant volume of exports for subject countries and even for participating producers from subject countries to the third countries are below normal value, non-injurious price and below Indian prices.
  4. . In the absence of information with respect to subject countries, Authority has considered capacity and demand on global level basis. Capacity is higher than demand which shows that producers are export oriented.
  5. Authority has held that there is likelihood of continuation/recurrence of dumping and injury in case the anti-dumping duty in force is allowed to cease at this stage and has proposed extension of duties.