Business

India: Anti - Dumping Duty on PTA Will Increase Polyester Prices

The PTA Users Association has demanded to the Union government to withdraw its proposal for imposition of the duty on the import of PTA. The PTA Users Association comprises of the manufacturers of polyester chips, polyester films and polyester filament yarn.

In a notification dated June 19, the Union Ministry of Commerce and Industry has recommended imposition of provisional anti-dumping duty on import of PTA from China, Korea, Thailand and European Union at a rate of US$ 62.82, 117.09, 99.51 and 23.75 per MT respectively. This is expected to have a significant price hike in PTA, thus, making the polyester fibers more costly.

The association predicted that the anti- dumping will crash down over 20,000 small and medium polyester fiber and polyester yarn manufacture in the country. This will further affect and might end the competition within the industry, which will be totally inequitable for the finished product Indian consumers. PTA imports attract 5 per cent customs duty and current spot price is around US$ 995-1000 per MT CNF India. The polyester fiber industry is working at just 60-70 per cent capacity utilisation now because of tight supply of PTA and the imposition of anti-dumping duty will bring down capacity utilisation further