India recommends countervailing duties on Chinese PVC suspension resin

India's Directorate General of Trade Remedies has recommended provisional countervailing duties on imports of PVC suspension resin originating in or exported from China, according to its preliminary findings released Oct. 26.

DGTR found subsidized imports caused material injury to domestic producers. Its recommendation remains subject to a final decision by the government.

The proposed duty for each cooperating producer group would be the lower of its subsidy margin and injury margin, in line with India's lesser-duty rule, DGTR sai. None of the investigated producer groups had a subsidy margin below the 1% ad valorem de minimis threshold.

For non-cooperating or unlisted producers, as well as producer groups whose responses were rejected, DGTR calculated a residual subsidy margin of 90%-100% based on facts available. This residual subsidy margin should not be presented as the final payable duty unless confirmed by the duty table and imposed by the government.

The investigation began Feb. 26 following an application by Indian producers Chemplast Cuddalore Vinyls Ltd., DCM Shriram Ltd. and DCW Ltd. The period of investigation ran from Oct. 1, 2024, to Sept. 30, 2025, while the injury assessment covered fiscal years 2022-23, 2023-24 and 2024-25 (April-March), as well as the investigation period.

Injury assessment

Chinese PVC suspension resin was exported to India at subsidized prices and the domestic industry suffered material injury, according to the preliminary findings. A causal link existed between the subsidized imports and the injury, the report said.

The domestic producers submitted that Chinese import volumes increased 107% over the injury period, compared with 25% growth in Indian demand, while China's share of total imports rose to 51% from 35%. They also alleged price undercutting of 0%-10%, more than a doubling of inventories, cash losses and negative returns on capital employed.

Other interested parties disputed the injury case, arguing that higher imports reflected growing demand and India's domestic supply deficit. They also said additional duties could shift import demand toward suppliers in Indonesia, Japan and Thailand, which benefit from preferential customs treatment.

Market significance

If imposed, the duties could raise the cost of affected Chinese PVC cargoes and influence Indian buyers' sourcing decisions, potentially supporting domestic resin prices or redirecting demand toward alternative overseas suppliers. The precise impact will depend on the producer-specific duty rates, their implementation and prevailing import-price differentials.

DGTR said countervailing duties would not prohibit Chinese imports but were intended to offset subsidization and restore fair competition in the Indian market.

Next steps

Interested parties have 20 days from publication of the preliminary findings to submit comments. DGTR will subsequently hold an oral hearing, conduct further verification where necessary and disclose the essential facts before issuing its final findings.

The domestic producers have also sought retrospective application of countervailing duties, a request DGTR said it would examine at the final stage.

Platts, part of S&P Global Energy, assessed PVC Suspension CFR India at $900/mt on Oct. 21, amid higher tradable indications and offers.

"Prices are inching up amid fear that CVD findings and implemntation may come in soon, and hence end users are willing to pay more to ensure they can take advantage before implementation," a trader said.