As expected, domestic manufacturers of CPVC have hiked the prices of their products by about 5% post government’s decision to impose anti-dumping duty (ADD) on CPVC resin/compound imported from China/Korea into India for six months. The price hike has come into effect from 1st September. It may be noted that the Union ministry of commerce and industry vide notification no. 33/2019-Customs (ADD) dated 26th August, 2019, has finally notified a provisional anti-dumping duty on imported CPVC resin/compound from producers/exporters from China and Korea. The duty shall be effective for a period of six months from the date of its publication in the official gazette. Considering the quantum of amount notified for CPVC resin/compound (from US$2,031/te to US$2,849/te), the ADD would make the Chinese and Korean imports (constituting 30% of India’s overall imports of CPVC resin/compound) non-competitive vis-à-vis major US and Japan CPVC suppliers.
Domestic demand for CPVC is close to 0.12-0.14MT and 25% of CPVC resin is sourced from China/Korea at significantly lower prices. In India, there are only two domestic manufacturers of CPVC ― DCW and Chemplast ― and both have complained about dumping of resins by these countries and have asked for an anti-dumping duty levied on CPVC imported from China/Korea. The duty, if levied, would hurt unorganized/small players as the price would go up in the market. According to estimates, nearly unorganised sector is likely to lose 30% of the market share due to this move which will be grabbed by the players in the organised segment.
It should be noted that the CVPC pipe in India had been growing at a faster rate than the existing plastic pipe system. Further, in order to encourage the sector, the Government of India (GOI) has been placing orders for sewage, water supplies and plumbing pipes.