The Supreme Court of India has Issued an Order to Impose Interim Anti-Dumping Duties on Importing LDPE

The Supreme Court of India (SCI) has ordered a provisional anti-dumping duty (ADD) to be imposed on imports of low-density polyethylene (LDPE) from Saudi Arabia, Singapore, Thailand, and the United States.

The order was issued on April 13, in accordance with the final conclusions of the Directorate General of Trade Remedies (DGTR) on March 31, last year, and in response to a petition from the Chemicals and Petrochemicals Manufacturers Association (CPMA).

After the government failed to enforce the ADDs in 2022, the CPMA, the leading group representing the chemicals industry, petitioned the Supreme Court.

The Indian government chose not to impose the measure on 6 June 2022, rejecting the DGTR's recommendation to levy ADDs ranging from USD 17.05/tonne to USD 216.76/tonne on LDPE imports from the four countries.

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“Pending final disposition of this petition, respondents shall impose a provisional ADD as an interim measure," the SCI said in its order, adding that the levy of ADD would be subject to final adjudication in these proceedings.

Following a complaint from the CPMA, India began a probe into LDPE dumping from the four countries and two others in October 2020. In India, Reliance Industries Ltd (RIL) is the sole producer of LDPE.

Low-Density Polyethylene (LDPE): Definition and its Industrial Uses

Low-Density Polyethylene is a form of thermoplastic manufactured from the monomer ethylene. It is a lightweight, soft, and flexible plastic. It is also known for its durability, low-temperature flexibility, and corrosion resistance

It is less dense and more flexible than other polyethylene, such as high-density polyethylene (HDPE). It is widely utilised for plastic bags, films, and containers.

• Owing to its strong chemical and weather resistance properties, it is employed in agricultural applications such as greenhouse films, mulch films, and irrigation pipes.
• It is also utilised in construction for damp-proof membranes, protective sheets, and vapour barriers, because of its moisture resistance and flexibility.
• Additionally, it is utilised in medical tubing and bags, as well as prosthetic devices, and is also used for electrical insulation and cable coverings.

LDPE Price Trend and Forecast

North America

Recently, LDPE prices in the United States have been falling.

In the United States, the monthly rate of price decline for LDPE was higher, although the trend remained downward. The shifting upstream Ethylene price could not reverse the downward price trend. Poor downstream demand contributed to the drop in LDPE pricing in the United States.

APAC

LDPE prices in Asian markets have been steadily declining in recent times. Despite several troughs and peaks in upstream ethylene prices in Asian markets, LDPE prices fell significantly.

The major LDPE exporter to Asian markets (Saudi Arabia) had two massive manufacturing plants face production cuts owing to maintenance activities, however, this had no significant influence on Asian LDPE prices due to Asia's weak performance in the downstream piping and packaging industries.

Because China is the largest importer of LDPE made in Asia, the country's poor economic position lowered Asian LDPE prices.

Europe

Prices for LDPE have recently fallen slightly in the European region.

The main reason for the LDPE price decline was a lack of demand from the downstream piping sector in domestic markets.

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However, prices began to rise as stocks in the European region began to decline, and high input costs such as energy and transportation began to catch up with manufacturers, forcing them to raise prices despite the dismal demand forecast for LDPE in Europe. A drop in Saudi exports contributed to the price increase.

As per Procurement Resource, The Supreme Court of India (SCI) has ordered the imposition of a provisional anti-dumping duty (ADD) on imports of low-density polyethylene (LDPE) from Saudi Arabia, Singapore, Thailand, and the United States. The order was issued on April 13 in response to a petition by the Chemicals and Petrochemicals Manufacturers Association (CPMA) and in compliance with the final conclusions of the Directorate General of Trade Remedies (DGTR) on March 31, last year. The CPMA, the major association representing the chemicals sector, petitioned the Supreme Court after the government failed to implement the ADDs in 2022.