Product Description – The product under consideration is Emulsion Styrene Butadiene Rubber of 1500 series, also known as ESBR-1500. Compared to natural rubber, SBR has better processability, homogeneity, heat ageing, and abrasion resistance, but is inferior in terms of elongation, hot tear strength, hysteresis, resilience and tensile strength. The major demand of SBR is in the automotive sector for the manufacture of tyres.

HS Codes – The product is classified under Chapter 40 of Schedule I, Customs Tariff Act, 1975c under the heading 400219.

Countries Involved – European Union, Japan, Republic of Korea, Russian Federation and the Kingdon of Thailand.

Applicant – Reliance Industries Limited.

Period of Investigation – 01^st October 2023 – 30^th September 2024.

Injury Period – 2021-22, 2022-23, 2023-24 and the period of investigation.

Margins and Recommended Duties –

Key Findings –

1. The product under consideration is Emulsion Styrene Butadiene Rubber of 1500 series, also known as E-SBR 1500.
2. On the issue of relationship with the producer in the subject countries, the Authority examined the import data from Russia for the injury period and found no exports of the subject goods by PJSC SIBUR Holding. Under Rule 2(b), a domestic industry must not be related to exporters/importers or import the subject goods. Since the alleged related entity did not export to India, the applicant qualifies as a domestic industry under Rule 2(b).
3. On the issue of no injury suffered by the other producer, the Authority is required to examine injury only for the defined domestic industry which in the present case in RIL and ISRPL. No interested party has shown that ISRPL is not suffering injury. Also, ISRPL’s own annual report confirms that low-priced imports have negatively affected its performance.
4. The dumped imports from the subject countries have increased in absolute terms as well as relative terms.
5. The price undercutting is positive and significant.
6. The imports have suppressed the prices of the domestic industry in the period of investigation.
7. The production and domestic sales of the domestic industry have increased in the period of investigation but at the cost of the profitability of the domestic industry.
8. The closing stock of the domestic industry has increased; the domestic industry was forced to export at a loss to avoid inventory accumulation.
9. The cash profit has declined by 51% over the injury period.
10. The imports have affected the ability of the domestic industry to raise capital.
11. The imports are affecting the prices of the domestic industry.
12. The Authority examined the rate of increase in dumped imports, the surplus capacities with the producers/ exporters, likely suppressing/ depressing effect on imports, measures imposed by other countries and found that there exists a threat of material injury to the domestic industry.
13. The impact of anti-dumping duty was found to be minuscule on the downstream industry with a mere 0.41% increase in the total cost of tyre production.
14. The Authority has also considered that the cumulative impact of anti-dumping duty on TDQ, Sulf. Acc, PX-13, SBR, Insoluable Sulphur and IIR. It is seen that the impact of duty of all these products on which either an investigation is ongoing or measures are in force is less than 1%