India set to impose duties on acrylonitrile butadiene rubber imports

New Delhi – The Indian Directorate General of Trade Remedies (DGTR) has completed its antidumping probe into imports of acrylonitrile butadiene rubber (NBR) from China, the EU, Korea and Russia.

The probe followed a petition by sole local NBR producer Apcotex Industries Ltd and covered NBR in bale form with ACN content between 25% and 42%, excluding carboxylated, hydrogenated and oil-extended NBR bales.

In its final finding published 25 Sept, the authority said its investigations resulted in “affirmative findings of dumping and consequent injury.”

However, it went on to note that there was “a supply-demand gap” for the product in India.

“The domestic industry has been unable to increase its production capacity beyond 12,000–15,000 tonnes per annum due to persistent operational bottlenecks, frequent equipment breakdowns, storage limitations and other practical constraints.”

Furthermore, DGTR said the product is a raw material for the automotive industry and if duties are imposed, costs for automotive manufacturers will rise.

This, it warned may prompt automotive manufacturers to “opt to import rubber components directly to bypass the cost implications of the duties.”

Considering the contentions raised, the trade authority recommended the imposition of antidumping duties on the goods for a period of five years, as below:

• NBR produced by Arlanxeo EO Emulsion Rubber France SAS (EU origin) attracted no antidumping duty.

• Other EU producers faced a duty of $205/tonne.

• NBR from the EU, exported from any country other than the EU, Korea, Russia or China, was also charged at $205/tonne.

• NBR from Kumho Petrochemical Co. Ltd. (Korea) was given no duty.

• Other Korean producers faced a duty of $420/tonne.

• NBR exported from Korea but produced in any other country carried a duty of $420/tonne.

• NBR from PJSC Sibur Holding (Russia) was given no duty.

• Other Russian producers faced a duty of $606/tonne.

• NBR exported from Russia but produced in any other country also carried a duty of $606/tonne.

• NBR from Chinese producers faced a duty of $291/tonne.

• NBR exported from China but produced in any other country also carried a duty of $291/tonne.

In 2021, the Indian government turned down a similar recommendation by DGTR, which sought antidumping duties on NBR imports from China, the EU, Japan and Russia.

At the time, DGTR had recommended a duty of $2,086.78/tonne for all producers, including Arlanxeo Emulsion Rubber France SAS, Zeon Corp. and Russia's JSC Krasnoyarsk Synthetic Rubber Plant. (ERJ report)