Indian quartz exporters have started feeling the heat

Indian quartz exporters have started feeling the heat

Recent two events in US have turned Indian quartz exporters little nervous as they are still unable to understand the impact of these events. First, the US ended its preferential trade treatment for India, effective June 5, 2019. According to leading quartz exporters like Pokarna, there is no clarity yet on  the extent of impact of this development. But, generally, this step would impact the Indian exports of quartz to USA. Secondly, the US Department of Commerce recently received a petition to impose antidumping duty on quartz products from India & Turkey. Though no evidence of dumping of quartz products from India has been found there will be uncertainty till the final announcement is made by the United States International Trade Commission (USITC). The USITC is expected to make an announcement related to antidumping duty by June 24, 2019. It should be noted that USA is the largest market for Indian quartz exporters.

India is one of the beneficiaries of the ongoing trade war between USA and China. The trade war between the US and China has moved substantial demand for quartz away from China to India and as a result tens of new players are coming up with additional manufacturing facilities in the country. Further, recent currency depreciation is another factor going in favour of Indian exporters.

Earlier, China accounted for 60% of the USA quartz market. However, with USA imposing anti-dumping duty on Chinese quartz situation dramatically changed providing Indian exporters a window of opportunity. But the euphoria is likely to be short lived due to tougher US laws under Trump regime.

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