Players grope in the dark as India moves to curb PVC imports

PVC players in India are waiting for clarity on the latest notification regarding a safeguard investigation into PVC imports with more than 2ppm residual VCM content, the “final findings” of which were published in an official gazette earlier in the week.

The investigation has recommended the imposition of quantitative restrictions on the said imports.

Market players said further clarifications were awaited from the government regarding the way the quantitative restrictions would be imposed. “We have sent the recommendations to our lawyers and are waiting for word from them,” a major Indian trader said.

The finding has suggested restricting imports from China, Taiwan, US and Russia to about 221,000 tons for a year, with quarterly quotas recommended for each of these countries. The quarterly quotas are 20,000-21,000 tons for China, 15,000-16,000 tons for Taiwan, around 10,000 tons for the US and 9000 tons for Russia.

Residual VCM content of more than 2ppm is typically found in acetylene-based PVC, which is mostly imported into India from China. Traders said the inclusion of Taiwan, US and Russia in the list is thus a confusing.

“We’re still not certain whether the quotas that have been recommended are for imports of all PVC or it is just for PVC with RVCM content of more than 2ppm. We’re also not sure whether the government still plans to impose safeguard duties on the high-RVCM product,” another trader said.

At the same time, traders said this could certainly have an impact on availabilities in the market. “Imports of acetylene-based PVC used to account for 30-40% of the total Chinese PVC imports into India before the safeguard duty investigation was notified last year. That notification restricted the flow of imports from China although when the findings were delayed, imports resumed as normal but we’re lately seeing the flow of carbide-based PVC imports slowing down, perhaps in anticipation of the recommendations of the safeguard investigation,” yet another Indian trader said.

“We have queries on the latest report and only the fine print can provide the answers. That has to come from our lawyers, or the government itself,” he added.