On September 26, 2025, the Indian government took steps to protect its domestic chemical industry from unfairly traded imports, announcing definitive anti-dumping duties on a key polymer imported from China. The decision follows an extensive investigation by the Directorate General of Trade Remedies (DGTR), which found evidence of significant dumping causing material injury to a local producer.
The duties apply to imports of "Copolymer Polyol of hydroxyl value >= 23.5" (HS Codes 3907 2910 and 3907 2990), a chemical primarily used in the production of flexible foam for mattresses and other applications. The DGTR clarified that Polyester Polyol of the same grade is excluded from this measure.
The investigation, initiated in September 2024, concluded that imports from China were entering the Indian market at dumped prices, with margins ranging from 20% to over 50%. This unfair pricing undercut domestic sales and severely harmed the financial health of the sole Indian manufacturer, M/s Expanded Polymer Systems Pvt. Ltd.
The following key findings from the investigation formed the basis for the final determination:
Massive Import Surge & Market Displacement: Import volumes from China surged by 287% (from 4,988 to 19,338 MT), seizing over 90% of the total import market. This massive influx displaced traditional suppliers from Europe and the USA and severely eroded the domestic industry's market share.
Significant Price Undercutting & Suppression: The landed value of Chinese imports was consistently 10-20% below the domestic industry's price. This forced the domestic producer to suppress its prices below its own cost of sales for the entire period, directly preventing profitability.
Severe Financial Injury: Despite a 96% growth in domestic demand, the domestic company operated at a loss with negative returns. Its capacity utilisation was critically low at around 32%, while inventories swelled by 137%, confirming financial distress due to unfair competition.
Causal Link Established: The Authority definitively ruled out other factors like demand contraction or technological changes, concluding that the surge of low-priced, dumped imports was the primary cause of the material injury.
In its final findings, the DGTR affirmed that Expanded Polymer Systems Pvt. Ltd. constitutes a valid 'domestic industry' and that a direct causal link exists between the dumped imports and the injury suffered.
Recommended Anti-Dumping Duties
The DGTR has recommended the following duties (CIF value in USD per Metric Tonne) for a period of five years:
The authority stated that the imposition of these duties aligns with the World Trade Organisation's (WTO) framework and aims to restore fair competition in the Indian market. It emphasised that the measures are not intended to restrict imports but to ensure they enter India at non-injurious prices, thereby safeguarding the interests of the domestic industry.
India’s Ministry of Finance will issue the final notification for the imposition of these duties.
