India rejects exemption of special PVC from anti-dumping duty

The Directorate General of Trade Remedies (DGTR) under the Union Ministry of Commerce and Industry, has dismissed the industry’s proposed inclusion of special polyvinyl chloride (PVC) under the anti-dumping duty (ADD) levy to protect the interest of domestic producers, as per Polymerupdate.

The authority, with integrated single window agency for providing a comprehensive and swift trade defence mechanism in India, finds the domestic producers’ claim as ‘baseless’ to exclude special PVC from the ambit of ADD duty levy.

“The special PVC produced by the domestic industry are like articles to the product under consideration imported from the subject country within the scope and meaning of the ADD rules. Hence, it is held that the grades claimed by Epigral Ltd do not warrant exclusion from the scope of product under consideration (PUC),” said a DGTR notification issued last week.

The notification further added, “After examination of submissions made by all the interested parties and perusing the material placed on record, the authority concludes that there is no exclusive, clearly identifiable category of PVC suspension resin which is unique for manufacturing of chlorinated PVC (C-PVC). PVC suspension resins claimed as special by Epigral Limited for manufacture of C-PVC resin can be used for other applications and there are other PVC resins which have been used for manufacture of the C-PVC resin. In view of this, the two are technically and commercially substitutable.”

Chemplast Cuddalore Vinyls Ltd, DCM Shriram Ltd, and DCW Ltd, jointly filed an application before the designated authority for initiation of an anti-dumping investigation concerning imports of PVC Suspension Resins, originating in or exported from China, Indonesia, Japan, Korea, Taiwan, Thailand, and the United States of America. Responding to this application, DGTR initiated ADD investigation vide its notification on March 26, 2024, aiming to determine existence, degree and effect of the alleged dumping of special PVC, originating in or exported from these countries, and to recommend the amount of ADD, which if levied, would be adequate to remove the alleged injury to the domestic industry.

After examination, the submissions made by all other interested parties, the authority concluded that there is a need for imposition of provisional anti-dumping duty in order to offset dumping and injury to the domestic industry, pending completion of the investigation. Accordingly, DGTR issued preliminary findings on October 30, 2024, recommending imposition of provisional ADD on imports of Suspension PVC from the aforementioned countries.

Following the notification recommending ADD levy, India’s major Suspension PVC and C-PVC producer and importer, Epigral Ltd, filed a writ petition before the Gujarat High Court alleging that the submissions made by the company were not considered prior to the issuance of the preliminary findings and the grades specified by it should have been excluded from the scope of the ADD levy. On November 29, 2024, the Gujarat HC in its judgement empowered DGTR to decide the merit of Epigral’s claim and pass the order accordingly.

There is a need to exclude special grades of PVC suspension resins used for manufacturing of C-PVC as the same are not offered by the domestic industry. The grades produced by the domestic industry are not technically and commercially substitutable with grades imported into India. Additionally, the company believes that special grade PVC is designed for very high porosity which is suitable for uniform chlorination for C-PVC. Such grade has different kinds of formulation to ensure long term heat stability of C-PVC resin which is not there in the case of the general grade of PVC.

The company further mentioned that Formosa Plastics Corporation produces and exports specialty grade PVC S65C, which has higher apparent density than PR065 grade of DCW Ltd. This allows for achieving high productivity and output for end users of C-PVC. Formosa’s S65C offers higher plasticizer absorption as compared to PR065, with large particle size the homogeneity of chlorine distribution is disrupted. PR065 leads to a shorter gelation speed which is not favourable for C-PVC manufacturing. Additionally, Epigral submitted dozens of other factors claiming to exclude special grade PVC from the ambit of ADD levy.

Taiwan-headquartered Formosa Plastic Corporation submitted that grade S65C suspension PVC is primarily utilized for production of C-PVC. The cold plasticizer absorption of S-65C is 27.9 percent, compared to 25.6 percent for normal grade K65 PVC, indicating its superior absorption capabilities. The mean particle size for grade S65C is 132?m, while grade K65 PVC has a mean particle size of 118?m. Particle size distribution shows grade S65C has thinner skin with uniform porosity and high cold plasticizer absorption. This allows chlorine to diffuse evenly during the chlorination process.

DCW does not produce this grade and has imported a significant quantity of S65C. Thus, the grades used for production of C-PVC should be excluded from the scope of the ADD levy. Formosa has endorsed the submissions placed by Epigral Ltd. While Thai Polyethylene Co Ltd opposed the ADD levy on any grade of PVC, Hanwha Solutions Corporation opposed Epigral's claim by saying, “Any exemption of any specialty grade is unjustified and against the purpose of the ADD investigation.

Finally, it was held that special grades of PVC are required in order to manufacture C-PVC, and such grades are neither available in India nor manufactured by domestic producers. According to DGTR, “Epigral has not approached domestic industry or bought special PVC from the domestic industry. Its scarcity for C-PVC was also not communicated to the domestic industry. Hence, the claim that domestically produced grades cannot be used for C-PVC is not established and therefore, is untenable.”

We remind, Tianjin Bohua Petrochemical is set to start operations at a new vinyls complex in H2 2025. Located in Tianjin, China, the complex will have caustic soda and PVC production capacities of 300,000 mt/year, VCM production capacity of 400,000 mt/year, and Paste PVC production capacity of 12,000 mt/year.

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TeraPlast Group continues its geographical expansion in Europe and acquires the assets for PVC and PE pipes production held by Wavin Hungary (Orbia’s Building and Infrastructure business), said the company.

The acquisition will be made by Polytech Kft, a subsidiary of TeraPlast. The value of the transaction is of EUR 7.04 million and comprises of close to 12.000 sqm of buildings and more than 40.000 sqm of industrial land located in Zsambek, 30 km west of Budapest. The equipment acquired as part of the transaction have an annual production capacity of 12,000 tons of pipes.

“Our strategy has always been to be market leaders in every market where we operate. From the beginning, our plan included developing a PVC pipe factory in Hungary. While our initial approach focused on a greenfield investment, the agreement with Wavin allows us to expedite the start of the production. The Zsambek facility positions us to achieve market leadership in Hungary and efficiently serve foreign markets such as Slovakia, the Czech Republic, Austria, Poland, Switzerland, Germany and countries in western Balkans. Our objective is to increase our sales in western Europe, and this acquisition allows us to offset the disadvantage of a poor road infrastructure, reducing transportation costs and delivery time. We have western quality and eastern prices, which is why we are confident that we will be successful.” stated Dorel Goia, Chairman of the TeraPlast Board of Directors.

The transaction will close in two steps, once several preconditions have been met. Polytech is expected to commence the operation of the factory in the second quarter of next year.

In Hungary, TeraPlast Group operates two factories – Polytech and Pro-Moulding. The assets acquired from Wavin diversify the product range in Hungary by PVC pipes production. These will add to increasing the geographical footprint of TeraPlast Group in Europe, respectively to increasing sales outside Romania which at present represent 25% of the consolidated turnover.

TeraPlast Group is the largest polymer processor in Southeast Europe. The Group comprises of TeraPlast, TeraGlass, TeraPlast Recycling, TeraBio Pack, Palplast Moldova, Wolfgang Freiler Group companies, Optiplast and Somplast.

We remind, Tianjin Bohua plans to begin operations at the new vinyl complex in the second half of 2025. Located in Tianjin, China, the complex will have 300,000 tonnes per year of caustic soda and PVC production capacity, 400,000 tonnes per year of VCM production capacity and 12,000 tonnes per year of paste PVC production capacity.

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The project to build a gas pipeline project from Russia to China via Kazakhstan is underway, Russian Deputy Prime Minister Alexander Novak said in an interview with the Rossiya-24 TV channel, as per Interfax.

"This process, so to speak, is underway. Estimates, the feasibility study and negotiations are now underway," he said.

The new gas pipeline's capacity should be 45 billion cubic meters per year, of which 10 bcm will be used for gasification of the northeastern regions of Kazakhstan, the TV channel reports.

We remind, Russia's combined pipeline and liquefied gas exports to Europe rose 18%-20% year-on-year in January-November 2024 to just over 50 billion cubic meters.

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Chlorum Solutions USA, a subsidiary of Brasil-based Chlorum Solutions group, partners with Thyssenkrupp Nucera to develop its first US chlor-alkali plant in Casa Grande, Arizona, as per Chemanager.

The facility addresses the need for decentralized chemical production, enhancing supply chain resilience.

The project will incorporate advanced processes to modernize chemical manufacturing. The US company specializes in chlor-alkali plants and will use the skid-mounted technology of Thyssenkrupp Nucera.

The electrolysis specialist will oversee the engineering and procurement of the plant’s chlor-alkaline electrolyzer using skid-mounted technology. This modular approach simplifies construction, reduces costs, and increases operational flexibility to meet local production demands, the partners said in a joint statement.

The Casa Grande facility will use Thyssenkrupp Nucera’s energy-efficient membrane technology, which the company claims to offer a lower environmental footprint than traditional methods. By localizing production, the plant eliminates the need to transport chlorine over long distances. Instead, it will produce sodium hypochlorite, hydrochloric acid, and caustic soda directly from salt, providing a reliable, safe supply for markets in Arizona and nearby regions.

“We are proud to collaborate with Chlorum Solutions USA on this groundbreaking project focused on innovation using a modular design,” said Sachin Nijhawan, CEO of Thyssenkrupp Nucera USA. “This partnership with Chlorum Solutions USA establishes a new benchmark for excellence in the chemical industry.”

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Japanese chemical company Sumitomo Chemical will sell its China-based business producing polarizing film for large-size liquid crystal displays, said the company.

The transaction includes Sumika Huabei Electronic Materials (Beijing), registered by Sumitomo Chemical in 2009, and XUYOU Electronic Materials (Wuxi), established in 2016. Both companies will be acquired by China's Hubei Sunnytomo Optoelectronics.

The transaction amount is not disclosed. The transfer of the business will take place on March 31, 2025, Sumitomo Chemical reported in a press release.

Earlier it became known that Sumitomo Chemical will suspend part of the production of low-density polyethylene (LDPE) at its Chiba Works plant in Ichihara, Japan, by the end of 2024. As a result of the shutdown, the annual production capacity of the enterprise will be reduced by 20 thousand tons. The company expects this measure, combined with other optimization efforts, to improve the performance of its remaining facilities amid declining demand for LDPE.

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