India launches dumping investigation on halobutyl rubber

NEW DELHI—The Indian government has launched an investigation into the alleged dumping of halobutyl rubber (HIIR) originating or exported from the United Kingdom, U.S., Japan, Russia and Singapore.

The probe was initiated upon a petition by local manufacturer Reliance Sibur Elastomers (RSE), who claimed that the imports of the goods from the subjected countries had "materially retarded" the domestic industry.

The Directorate General of Trade Remedies (DGTR) of the Indian Ministry of Commerce and Industry said Sept. 30 that RSE was India's "sole producer" of HIIR, meeting a major proportion of domestic demand.

The applicant, the agency said, provided information showing that the imports had "prevented price increases, which otherwise would have occurred."

RSE also claims that it has faced "underutilization of capacities and had been forced to export in order to dispose of its production and had sold in the domestic market below its cost of sales." As a result, the manufacturer has claimed to earn "negligible return" on its capital employed.

"The performance of the domestic industry is much lower than that projected, both in terms of volume and profitability parameters," the DGTR stated, adding that there is "sufficient prima facie evidence of injury" to the domestic industry caused by dumped imports from the subject country.

The petition initially included imports of HIIR from the European Union, but the DGTR established that volume of imports from the region accounted for less than 3 percent of the imports of the products.

The period of investigation is from January to December 2022 with the "injury analysis" period extending to three preceding financial years.

Interested parties were requested to present their information to the DGTR within 30 days of receipt-of-notice.