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Insight | Time: Jul 25 2019 2:21PM
Analysis on China's spandex import in the first half of 2019
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On June 28, 2019, the Ministry of Commerce and Industry of India (MOCI of India) issued a notice stating the result of an anti-dumping investigation request, a joint application submitted by Indian companies Gujarat Polyfilms Limited and Century Enka Limited, targeted on nylon multi filament yarns originated in or imported from China, Korea, Taiwan and Thailand. This case mainly deals with products under Indian Customs Codes 540231, 540232, 540239, 540245, 540249, 540251, 540259, 540261 and 540269. The anti-dumping investigation period of this case is from April 1, 2018 to March 31, 2019 (12 months). The investigated periods are 2015-2016, 2016-2017, 2017-2018 and dumping investigation period.

Among the nylon filament products listed above, export quantities of products under the HS code of 54024510 (Single yarn of nylon-6, with≤50turns/m, not for retail sale) and 54023111 (Elastic filament of nylon-6, psy,>50tex, not for retail sale).

History of India's anti-dumping actions against nylon filaments from Chinese Mainland, Taiwan (China), Malaysia, Indonesia, Thailand and South Korea:

*MOCI: the Ministry of Commerce and Industry of India
MOF: the Ministry of Finance of India
CBEC: Central Board of Excise and Customs of India
AD: anti-dumping

The change of filament (54024510) was obvious. Since August 2018, China’s exports of nylon 6 filament (54024510) to India had increased rapidly month by month. The monthly export volume increased from 100-200mt/month to 1,000-1,300mt/month. The proportion of India's total exports to China had risen from 1-5% of normal years to a height of 20-30%, becoming the largest importer of nylon 6 filaments from China.

Actually, in March and May of 2019, China's nylon 6 filament exports to other countries also increased compared with the same period last year, but the increase compared to exports to India was minimal. It can be seen that India’s suspension of anti-dumping duty on China has been very effective in promoting China’s export to India, and this is the main reason why India has once again launched an anti-dumping investigation against China.

The changed of elastic filament (54023111) was mild. During the period of AD duty suspension, the elastic filament to India also increased, but the proportion of total exports did not rise obviously, basically low around 1-3%. The increase in the amount of elastic filament exported to India was in line with the increase of total exports growth.

In summary, since India suspended the AD duty on China since January 2018, and exports of nylon 6 filament from China to India has surged significantly, while India’s domestic demand has not increased significantly. The rising exports impacted on local Indian companies, and after that India ushered an anti-dumping investigation against China again, and it is of high possibility of an affirmative final ruling.

If Indian continues to levy $1,270/mt on China’s nylon 6 filament, according to previous cases, China’s exports of nylon 6 filament will be greatly reduced. It can be inferred that India will once again implement anti-dumping taxation on China, and the actual impact may take on in June-July 2020.

[RISK DISCLAIMER] All opinions, news, analysis, prices or other information contained on this report is provided by analyst of Zhejiang Huarui Information Consulting Co., Ltd (CCFGroup) as general market commentary and does not constitute investment advice. CCFGroup will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
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