The Commerce ministry’s investigation arm DGTR has recommended for the continuation of anti-dumping duty of Chlorinated Polyvinyl Chloride (CPVC) coming from China and South Korea for five more years to guard domestic players against inexpensive imports.

The Directorate General of Trade Remedies (DGTR) has concluded that allowing the current duties on "Chlorinated Polyvinyl Chloride (CPVC), whether or not further processed into compound," to expire could potentially result in a resurgence of harm to domestic market players. This determination follows an extensive review investigation into the existing duty, originally scheduled to conclude on August 25, 2024. Considering this, the DGTR has recommended the continuation of duties on Chlorinated Polyvinyl Chloride, proposing a range of USD 593 to USD 792 per tonne. This recommendation is rooted in the concern over the likelihood of ongoing or recurring injury to domestic market participants.

The present anti-dumping duty on CPCV appears to have been working as indicated by reduced imports of CPVC arriving at the Indian market. This is evidenced as during the first quarter of 2024 to imports of CPVC amounted to 33819.96 Kg as compared to 39433.12 Kg in the first quarter which was depreciation of more than 14%, according to the data of Ministry of commerce and Industry.

The conundrum of the inexpensive imports of major polymers, including CPVC has continued to threat the polymer production in India for several years.  The trend of low costs Chinese imports has been a significant factor in the Indian polymer industry since 2022 as reported by a manufacturer of CPVC DCM Shriram which witnessed a decline in its’ PVC and CPVC businesses. On one side Indian CPVC producers may find relief as this extension of anti-dumping duties levels the playing field for domestic manufacturers, but on the other side cost of construction material across the Indian market are expected to further rise, which may hurt developers’ confidence in taking up of new projects.

Overall prices of CPVC across the Indian market witnessed a decline of approximately 9% during the month of May 2024 and have been witnessing a bearish movement since March 2024, due to continued influx of inexpensive imports, despite the demand conditions witnessing improvements across the Indian market.

Overall prices of CPVC across the Indian market are expected to increase as demand conditions remain positive along with the extension of anti-dumping rule to the Chinese and South Korean imports. Commercial construction activities are also likely to witness an upsurge as the election season has come to an end.