India's Nov caustic soda imports double, but seen falling on anti-dumping probe

Singapore — India's caustic soda imports more than doubled to 39,726 mt in November 2020, from 17,383 mt in October, according to the latest Indian customs data released Jan. 26. But market sources said the country's caustic soda imports will likely fall in the coming months amid ongoing anti-dumping investigations.

According to trading sources, a slow down in India's import demand would likely weaken Asia's caustic soda market.

On Dec. 17, 2020, the Indian government said it had initiated anti-dumping investigations on caustic soda imports from Japan, Iran, Qatar and Oman.

The decision to start the investigations came on the back of an application filed by Alkali Manufacturers Association of India.

"The applicant has alleged that material injury to the domestic industry is being caused due to dumped imports from Japan, Iran, Qatar, and Oman," the government said in a statement in December 2020.

On Jan. 19, the Indian government extended the deadline it had initially set to receive responses regarding anti-dumping investigations on caustic soda imports from Japan, Iran, Qatar and Oman by 28 days to Feb. 19.

According to the latest customs data, India's caustic soda imports from Japan rose to 32,668 mt in November 2020 compared with nothing in October.

Platts had assessed FOB Northeast Asia caustic soda at an average of $236/mt in December 2020, 9.1% higher from a month earlier. To-date in January 2021, FOB Northeast Asia caustic soda assessments average $227.50/mt, Platts data showed.

Despite concerns over India's import demand, caustic soda production is on an uptrend as chlor-alkali producers keep their plant operations high amid healthy demand for downstream products, such as ethylene dichloride or polyvinyl chloride.

Asian demand for EDC and PVC is strong as the US has been exporting lesser EDC and PVC following the unplanned shutdown of several US plants.