India launches anti-dumping probe into s-PVC imports

India has launched an anti-dumping investigation into suspension polyvinyl chloride (s-PVC) imports originating from China, Indonesia, Japan, South Korea, Taiwan, Thailand and the US during October 2022 to September 2023.

Three out of five Indian s-PVC producers have filed an application to investigate potential dumping of s-PVC imports into India. The Ministry of Commerce and Industry (MCI) issued a notice on 26 March announcing the launch of the investigation. The investigation primarily revolves around PVC grades manufactured from a suspension polymerisation process, which are typically considered general-purpose grades across global markets.

The investigation does not include cross-linked PVC, chlorinated PVC, mass PVC or paste PVC. MCI has already announced an anti-dumping investigation into paste PVC imports in October 2023.

Applicants have also requested for a retrospective imposition of potential anti-dumping duties, saying that there is a clear history of s-PVC import dumping from the above mentioned origins since the expiration of previous anti-dumping duties on s-PVC imports in February 2022.

Upcoming capacities and import barriers

India has around 1.6mn t/yr of domestic PVC production capacity as of 2023, according to Argus data.

India also imported 3.2mn t of PVC from various origins last year, with the largest growth in supplies from China, northeast Asia and North America.

This was mainly attributable to rising PVC demand in India following continuing government incentives to boost construction and agricultural activity in the country, with both industries heavily reliant on supply of PVC pipes.

Furthermore, the Indian market is readying itself for the addition of new chlor-vinyl production capacities in coming years, with an aim to bring total nameplate PVC capacity in India to 3.8mn t/yr as of 2028. Indian authorities have already announced several measures targeted at controlling the flow of PVC imports into India as a result. Fresh anti-dumping investigations have started after India's ministry of chemicals and fertilizers announced BIS quality restrictions on PVC and PP imports in February.

A delay in some Indian PVC capacity start-ups remains plausible, but new production in the country will likely limit incremental PVC imports in the coming years, or at least prevent them reaching record-high levels as in 2023.

By Michael Vitiello

India PVC imports '000t