MDF manufacturers hopeful of ADD on imports soon

MDF manufacturers hopeful of ADD on imports soon

Manufacturers of Medium Density Fibreboard are hoping that the government will soon impose anti-dumping duty (ADD) on import of MDF into the country. It should be noted that the South based manufacturers of MDF are more affected by the imports than the North Indian manufacturers because of their proximity to ports.

Thick MDF imports are 8-10% cheaper than domestic MDF and thin MDF is 25% cheaper than domestic MDF, leading to pressure on south India MDF realisations. The government has started its investigation on anti-dumping duty on cheap MDF imports in November 2019, and the management is hopeful that the duty will get finalised by end of current FY20.

MDF manufacturers who are reeling under depressed prices are hoping that the government would act soon by imposing anti-dumping duty (ADD) on thin MDF. According to industry sources MDF manufacturers from South East Asian countries have been dumping thin boards in India below cost due to weakness in their core markets. This has affected the realisation for domestic manufacturers in Southern markets.

It should be noted that ADD has already been imposed on thick MDF and its application is likely to be further extended in FY 2022. In thin MDF, imported material is available at Rs 14,000-15,000 CBM, domestic material costs Rs 20,000. However, imported MDF is mostly available in Southern markets as they are close to ports. MDF being a bulky material its transportation over long distance makes the products costly and uneconomical. As such, North Indian markets are not much affected by the imported cheap MDF for the time being.

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