On Jan 5, DGAD, India’s investigation agency, wrote to Chinese embassy in India, that it would launch an anti-dumping investigation on China’s PSF export as a response towards domestic industrial requirement. The products concerned include non-dyed PSF ranging from 0.6 to 6D PSF (excluding recycled PSF, CDP, fire-retardance, low-melting, bi-component fiber). Specific HS code of the product has not released till now.
China’s PSF export volume in January-November of 2016 totaled 0.9204 million mt, of which 61.4 kt or 6.7% was exported to India, the fourth destination of China’s PSF export. And of all PSF export to India, direct-spun PSF export reached 39.3 kt or 64% of the total. Eliminating some differential fibers, the exports concerned with this case reached around 38.5kt.
PSF export volume to India in 2014-2016 significantly increased compared with 2013 and the proportion to the total exports also jumped 6-8%. Likewise, direct-spun PSF export to India also picked up in recent years and the ratio to the total exports doubled that in 2013.
Jiangsu Sanfangxiang and Fujian Jinlun were the two major suppliers of China’s direct-spun PSF export to India, accounting for 2/3 of the total. Given their production and exports to India, coupled with their respectively great market share in Jiangsu and Fujian, even if this anti-dumping measure is implemented, the influence it exert on these two large plants is limited.
India’ imported PSF began to increase since 2012 and reached around 100kt in 2015, around four times of that in 2012. India’s PSF exports fluctuated up in 2009-2013 on the whole while declined since 2014. Yet India’s PSF exports still outnumbered imports.
In 2015, India imported 98.8kt PSF, of which 70kt or 70.85% were from China. And India’s exports totaled 176.6kt with the US being its NO.1 export destination.
Combined with this two points, it hence can be argued that India’s anti-dumping investigation, if carried out, would protect its domestic chemical fiber plants and exert great influence on the export and import market, while such an impact would not be so obvious to China’s virgin PSF plants. Taken this as a miniature of the intensified traded friction, however, the further development of China’s PSF export market would prove to be more struggling.