India has seen a surge of synthetic textile imports from China since it imposed an anti-dumping duty on purified terephtalic acid (PTA), a key raw material used in making synthetic textile fibers.
The country imposed duties of between $19.05 and $117.09 (rate depends on the country of import) per metric ton on PTA from China, Korea, the European Union and Thailand in July, for a period not exceeding six months, as its domestic industry has suffered due to dumping by the aforementioned nations.
According to India’s Chemicals and Petrochemicals Manufacturers Association (CPMA), imports of the polyester staple fiber more than tripled, after the duty was levied to 16,785 tons in July to August this year, up considerably from the prior year period’s 4,441 tons, the Hindu Business Line reported. Purchases of polyester filament yarn more than doubled in the last two months compared to one year earlier.
The CPMA said the sharp increase in Chinese synthetic textiles and raw materials is posing a major risk to India’s synthetic textile agency, adding that China is becoming more aggressive as its domestic demand is stagnant.
“China also intends to finish off competition from Indian domestic producers in the case of raw materials used for synthetic textiles so that Chinese producers can dictate terms later,” Hindu Business Line reported CPMA as saying.