The Ministry of Commerce (MoC) has recommended to the Finance ministry about the imposition of anti-dumping duty on import of Plain Medium Density Fibreboard (MDF) having thickness of less than 6mm originating in or exported from Vietnam, Malaysia, Thailand and Indonesia for a period of 5 years. If the recommendation is approved by the Finance Ministry, which is likely, it will be notified by the Directorate General of Trade Remedies (DGTR). The MoC has recommended minimum import price of USD 227-258 per cbm.
It may be recalled here that Greenpanel Industries and Century Plyboards had filed an application before the Designated Authority, on behalf of the domestic MDF industry, for initiation of original anti-dumping investigation concerning imports of Plain Medium Density Fibreboards having thickness of less than 6mm originating in or exported from Vietnam, Malaysia, Thailand and Indonesia. Based on the application the Authority had initiated an anti-dumping investigation and the current recommendation is based on the findings of that investigation.
India imports about 250-300k cbm of MDF which is about 15-20% of the total requirement in the country. Of this, about 40% is thin MDF for which now the Ministry is contemplating imposition of ADD. Imported MDF is mostly consumed in the Southern states which are near to the ports as the transportation cost of MDF over long distance makes imports commercially unviable.
The pricing difference between thin MDF imports price and domestic selling price of companies is 20-25%, which is severely impacting the volumes and pricing for domestic companies. In the recent months, the MDF imports were impacted due to container availability issues and high freight rates, and hence, domestic MDF volumes were robust despite prices being higher than imports.