India imposes anti-dumping duty on caustic soda imports from Saudi Arabia, Korea and U.S. until 2013; domestic manufacturers expected to raise prices
October 24, 2011
– India’s finance ministry has imposed an anti-dumping duty on caustic soda, affecting all imports from Saudi Arabia, Korea and the U.S. until 2013, the Business Standard reported Oct. 16.
The duty amount will be based on caustic soda's reference rate and caustic soda’s landed cost, about US$400.
Because caustic soda imports have been cheap domestic manufacturers have been unable to raise prices, but the new tax will create an opportunity for them to consider pricing changes, a petrochemical company official said, according to the article.
A source from Tata Chemicals Ltd. agreed, saying the local industry would benefit from the new tax.
Following the enforcement of the duty, caustic soda prices soared by 3,000 rupees (US$60.13) to 4,000 rupees per tonne in just one week.
According to caustic soda companies, though, the new duty will not provide much benefit for the local industry as imports will remain a much more cheaper alternative, reported the Business Standard.
For the country’s biggest detergent maker, Nirma Limited, the duty is not a concern, as the company has its own caustic soda plant with in-house raw materials available, according to the article.
The primary source of this article is the Business Standard, New Delhi, India, on Oct. 16, 2011.