On September 26, 2025, the Indian government announced the imposition of definitive anti-dumping duties (ADD) on imports of Chinese Copolymer Polyol, aiming to protect the domestic chemical industry from unfairly priced imports. This decision follows a thorough investigation conducted by the Directorate General of Trade Remedies (DGTR), which confirmed significant dumping causing substantial harm to India’s local polyurethane industry.
The duties target Copolymer Polyol with hydroxyl value ≥ 23.5 (HS Codes 3907 2910 and 3907 2990), a key chemical used in producing flexible foam for mattresses and other applications. Notably, Polyester Polyol of the same grade is excluded from this measure.
The DGTR investigation, initiated in September 2024, revealed that Chinese imports were sold at dumped prices, with dumping margins ranging from 20% to over 50%, undercutting domestic producers and causing financial distress to the sole Indian manufacturer, M/s Expanded Polymer Systems Pvt. Ltd.
Key Findings from the DGTR Investigation
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Surge in Imports & Market Displacement
Imports from China jumped 287%, from 4,988 MT to 19,338 MT, capturing over 90% of the total import market. This influx displaced traditional suppliers from Europe and the USA, severely impacting domestic producers’ market share. -
Price Undercutting & Margin Suppression
Chinese imports were consistently priced 10–20% lower than domestic products, forcing Indian manufacturers to sell below their own cost, making profitability unattainable. -
Severe Financial Impact
Despite a 96% increase in domestic demand, Expanded Polymer Systems operated at a loss, with capacity utilization at 32% and inventories rising by 137%, confirming financial strain caused by dumped imports. -
Causal Link Confirmed
The DGTR ruled out other factors, such as demand changes or technology shifts, concluding that low-priced Chinese imports were the primary reason for the domestic industry's financial injury.
Recommended Anti-Dumping Duties
The DGTR recommended ADD on Chinese Copolymer Polyol exporters, calculated per CIF value (USD per Metric Tonne), for a five-year period. These measures comply with WTO rules and aim to ensure fair competition in India’s chemical market. The Ministry of Finance will soon issue the final notification confirming the duties.
These anti-dumping measures are not designed to restrict imports but to ensure that products enter the Indian market at non-injurious prices, protecting local polyurethane and chemical producers.
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