India initiates countervailing duty probe into China-origin PVC suspension resin imports

India's Directorate General of Trade Remedies (DGTR) has initiated a countervailing duty investigation into imports of PVC suspension resins from China, following petitions from leading domestic producers Chemplast Cuddalore Vinyls, DCM Shriram and DCW. The companies allege that Chinese manufacturers benefit from a range of government subsidies, resulting in significant injury to the Indian PVC industry, according to an official document published on the Gazette India website Feb. 27.

The probe focuses on suspension-grade homopolymer PVC produced via suspension polymerization, with K-values between 55 and 77, with certain specialty grades excluded.

According to trade data from the Ministry of Commerce, India imported 1.18 million metric tons of PVC suspension resin from China between Oct. 1, 2024, and Sept. 30, 2025. For the calendar year 2025, imports stood at 1.17 million mt, accounting for approximately 47% of total PVC suspension grade imports, up from 38% in 2024.

The applicants have requested the retrospective imposition of duties, citing significant increases in imports and associated losses, according to the official document. The DGTR has stated that it is considering both provisional assessment and retrospective duties as part of the investigation. The period under review runs from Oct. 1, 2024, to Sept. 30, 2025, with injury data covering the previous three years. Interested parties have been asked to register on the SETU portal and submit information in the prescribed formats.

Chemplast Cuddalore Vinyls, DCM Shriram and DCW are yet to respond to queries from Platts.

Market participants, including traders and exporters, are reportedly adopting a wait-and-watch approach as the investigation unfolds.

An India-based trader said the probe's outcome might be swayed by China's recent move to revoke VAT benefits on PVC exports starting April 1, which will raise prices of China-origin PVC.

A Chinese trader said, "I consulted the China Chlor-Alkali Industry Association, China has not been subject to countervailing duties in practice. Moreover, it is very difficult to define and implement such measures."

"Countervailing duties are actually very difficult to define, as subsidies can take many forms, including talent subsidies, electricity subsidies, land-use subsidies, interest subsidies, and tax rebates," the same trader said

Platts assessed Suspension grade PVC CFR India at $720/mt on Feb. 25, 2026, unchanged from the previous week.