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MOSCOW (MRC) -- The National Tariff
Commission (NTC) investigates dumping of PVC Resin by Korean and Taiwanese
companies in Pakistan at prices lower than their domestic markets that can
potentially hurt the local PVC industry of the country, said Thenews.
Huge
capacities of PVC production exist in the Far-East Asian countries such as
Taiwan, Korea, Thailand and China and an investigation is being carried out to
check the trend of dumping their products in Pakistan at a price, which is even
lower than the domestic price in their respective countries, the sources
said.
NTC is investigating this matter on the request of Engro
Polymer and Chemicals Ltd, the largest producer of PVC in the country, they
said.
NTC is investigating if significant dumping margins are
the underlying reason of a surge in imports of the investigated product, which
have taken a substantial share in the domestic market of Pakistan and can
potentially cause injury to the domestic industry engaged in the production of
PVC Resin, the sources said.
The commission will also review if the
performance of the domestic industry engaged in the production of the same
products is suffering material injury as a consequence of the imports of the
investigated product from the exporting countries, the sources
said.
Industry sources demanded the government to take appropriate action
against dumped imports of the investigated product from the exporting countries
through imposition of antidumping duties, otherwise, the sources said, the
domestic industry will continue to suffer material injury on account of the
unfair imports of the investigated product and their viability and competitive
position will be unfavourably affected in the future, further increasing the
dominance of such dumped imports.
Pakistan has a domestic PVC
Resin market of around 145,000 metric tons per annum against the domestic
production capacity of around 156,000 metric tons per annum. Imports are
around five percent of the total market size. The sources said that due to
unnecessary imports of the PVC Resin in the country, Pakistan is forced to
export surplus quantity, which is an economically inefficient
situation.
The authorities in India, which is a net importer of
over one million tons of PVC every year, have recently recommended imposing
dumping duty on PVC Resin from Taiwan, China, Korea and other countries
because these countries were dumping their products in India at the price lower
than their domestic price, the sources said, adding that this step was taken
primarily to protect the local PVC industry.
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