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India ends anti-dumping duty on Saudi polypropylene

Zoom  Zoom Issue Date:2012-01-05   Source: PUWORLD   Browse:741

A December 30 statement on the website of India’s Central Board of Excise and Customs indicates that the country has lifted anti-dumping duty on Saudi Arabian polypropylene without giving a reason for the decision.

 

A 6.5% duty was first imposed on polypropylene imports from Saudi petrochemical companies such as Saudi Basic Industries, Advanced Petrochemicals Co. and National Industrialization Co., after a request from Reliance Industries, which produces over 50% of India’s polypropylene.

 

Abdullah Al-Garawi, CEO and president of Advanced Petrochemicals Co., told the Bloomberg news agency on January 2 that he had received confirmation from the Saudi Ministry of Petroleum, which was placed in charge of the anti-dumping negotiations last year, that the duty had been lifted.

 

We had a hearing on December 20 in India and our lawyers were there, but all of a sudden the hearings were cancelled and we were not told the reason,” he said. “It’s clear that the issue was resolved at a higher official level.”

 

The decision comes at an important time for relations between the two countries. A  Saudi trade delegation to India arrived on January 3, led by Saudi commerce and industry minister Tawfiq Al-Rabiah. Lasting three days, both parties are expected to discuss means of strengthening investment and trade co-operation between the two countries. The Associated Chambers of Commerce and Industry of India has named oil, gas and petrochemical sectors, among others, as being potentially suited for further collaboration.

 

India is looking to obtain more oil and natural gas from Persian Gulf nations, at a time when it has encountered payment disputes with Iran, and US and EU sanctions are working to further limit Iranian influence. Indian oil minister S. Jaipal Reddy said on December 5 that Saudi Arabia will increase shipments to some Indian refiners this year, according to Bloomberg.

 

In related news, Saudi Polymers is expecting to begin commercial production of its newly built 445,000tpa propylene and 400,000tpa polypropylene plants in 1Q12. Saudi Polymers is jointly owned by National Petrochemicals Company (Petrochem) and Arabian Chevron Phillips Petrochemical Company Ltd.

 

 

  

 
 
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