The Commerce and Industry Ministry plans to initiate an anti-dumping investigation on polyester yarn originating in China, Indonesia, Nepal and Vietnam on May 21, 2020. It mainly involve products under Indian customs code 55092100.
Imports of polyester single yarn by India totaled 64kt in 2019 with 46 per cent coming from Indonesia and 30 per cent from China. However, the imports from the countries involved in the investigation-China, Indonesia, Vietnam and Nepal- accounted for 99 per cent of total polyester single yarn imports of India, which nearly covered all polyester single yarn imports.
During the pandemic, demand for polyester single yarn was bearish both in India local market and overseas, and Indian spinners suffered much. By initiating the anti-dumping investigation at this time, the Indian government aims to protect and support local spinners. It also plans to change import patterns to enable Indian local spinners to occupy the market.
China’s polyester single yarn exports amounted to 218kt in 2019, out of which about 21kt was exported to India. The anti-dumping investigation will impact these exports as the export orders are already sporadic and the investigation will cause more problems. As a whole, the anti-dumping investigation may reduce China’s exports of polyester single yarns to India are expected to reduce.