The Directorate General of Trade Remedies (DGTR) has recommended imposition of provisional anti-dumping duties on aluminium foil originating from China on the basis of a complaint by domestic producers led by Hindalco.
The level of the provisional anti-dumping duty ranges from $ 653 to $ 873 per metric tonne depending on the Chinese producer. The final decision of the recommendation is taken by the Ministry of Finance.
The probe into the dumping complaints was launched in March this year and was limited to the foil up to thickness of up to 80 micron, excluding aluminium foil below 5.5 microns for non-capacitor applications. The period of investigation for the probe was October 2022 to September 2023.
Earlier too anti-dumping duty on aluminium foil from China was imposed in 2015 which expired in March 2022. After expiry of duty the applicants again approached the DGTR pointing out that that post expiry of duties, the aluminium foil imports have again started to enter the Indian market at dumped prices in huge volumes and resultantly causing material injury to the domestic industry.
Colour coated aluminium foil, foil for beer bottles and foil attached with paper and other material used for insulation, spices packing, thermal fluid lines covering and tea bags application were excluded from the investigation.
The combined capacities and production of these domestic producers was 1,32,140 MT and 69,572 MT respectively in the period that was taken up for the anti-dumping probe. These companies thus collectively command about 45% of capacity and 54% of production.
The DGTR investigation found that the aluminium foil below 80 microns has been exported to India at a price below the normal value, resulting in dumping. It also found that imports from China constitute a majority of the total imports into India and imports have captured 30% of the Indian market despite the applicants having sufficient capacity to meet the domestic demand.
The rise in Chinese imports was far sharper compared to the increase in demand. The overall increase in consumption was 106% in the year under review and the imports increased by 178%. Indian producer’s sales on the other hand increased by 29% only.
These dynamics are undercutting the prices of the domestic industry and they have been forced to reduce the selling price more than the cost of production.
Increase in imports has resulted in losses to the domestic industry and has adversely affected the growth of the domestic industry in respect of both volume and price parameters.
From: financialexpress
Financial News
