Tag: anti-dumping duty

Borosil Renewables says margins have likely bottomed out, fundraise aimed at debt reduction

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Pradeep Kheruka, Chairman of solar glass manufacturer Borosil Renewables , says while demand continues to be robust, pricing is a challenge, as “the Chinese prices are impossible, in the sense that you cannot make (solar) modules as the price at which they’re selling it.”

Borosil Renewables manufactures patterned glass and low iron solar glass for application in photovoltaic (PV) panels, flat plate collectors and greenhouses.

The Mumbai-based company has been facing severe margin pressures. For the third quarter of the current financial year (Q3FY24), the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin was at 6.1% versus 7.6% in the same quarter last year.  Higher power and fuel costs and material costs also added to the pressure.

The revenue was up 34% year-on-year (YoY) at ₹330 crore in Q3, but the weak operating performance along with higher finance costs led the company to a loss of around ₹16 crore.

“I think recognition by governments in India and in Europe, that what we are seeing today is predatory pricing at an unprecedented level. This is not competition by any stretch of imagination,” Kheruka noted.

Borosil Renewables also recently announced plans to raise ₹500 crore, which  Kheruka said will be used to retire debt. The current debt on books is nearly ₹538 crore, he said.

Also Read | Borosil faces tough Diwali amid challenging year for consumer business

In the interim Budget presented on February 1, Finance Minister Nirmala Sitharaman announced that the government will provide 300 units free power per month for homes with rooftop solar panels.

The announcement was cheered by Street with stocks of solar-related product manufacturers rising.

“The government has been leading the charge in Aatmanirbharta, which is something that I support greatly,” Kheruka said discussing his expectations from the government to help counter the dumping issues.

Prime Minister Narendra Modi had, on January 22, first announced the ‘Pradhan Mantri Suryodaya Yojana’, a government scheme under which one crore households will get rooftop solar power systems.

This isn’t the first scheme for promoting the installation of rooftop solar power systems, though. In 2014, the government launched the Rooftop Solar Programme that aimed to achieve a cumulative installed capacity of 40,000 megawatts (MW) or 40 gigawatts (GW) by 2022 — watt is a unit of power and is calculated as the amount of energy used over time, specifically one Joule per second.

However, this target couldn’t be achieved. As a result, the government extended the deadline from 2022 to 2026. The Pradhan Mantri Suryodaya Yojana seems to be a new attempt to help reach the target of 40 GW rooftop solar capacity

Also Read | China extends anti-dumping duties on Indian chemical for five years

Market capitalisation of the company is ₹7,936 crore.

For more, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

DGTR launches multiple anti-dumping probes into Chinese chemical imports

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Chemplast Sanmar, one of the largest producers in the country, has also filed a review for PVC Paste Resin imports originating not only from China but also from Korea, Malaysia, Norway, Taiwan, and Thailand. Sanmar has a PVC paste capacity of 60,000 metric tonnes and plans to add another 41,000 by the end of FY24, making it a significant player.

Meghmani Finechem and DCM Shriram have sought an investigation into Epichlorohydrin (EPC) imports from Korea, Thailand, and China. Meghmani Finechem recently commissioned EPC production. Both Meghmani Finechem and DCM Shriram, have a capacity of 50,000 tonnes, making them stakeholders in this review.

Lastly, Covestro India has filed for a review of Thermoplastic Polyurethane imports from China.

The actions by the DGTR are just the beginning of the investigations that typically span six to twelve months.

It’s crucial to note that the global demand has been weak, leading to these countries dumping their products in India at lower prices, adversely affecting local producers. Now, by filing applications or complaints to the DGTR, these local producers are taking steps to address this issue.

Also Read | India imposes anti-dumping duty on some Chinese steel for 5 years

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India probes dumping of imported fasteners and unframed glass mirrors from China

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The Directorate General of Trade Remedies (DGTR), a division of the Commerce Ministry, has launched an anti-dumping investigation into the import of fasteners and unframed glass mirrors from China. This action was prompted by both sectors’ associations, which reported substantial harm to their respective industries due to a significant influx of these goods from China at dumped prices.

Indian producers have made representations before the Authority claiming that prima facie evidence exists, indicating the injury suffered by the domestic industry because of the dumped imports. The associations have highlighted a significant rise in both the absolute and relative volume of these imports from China. The DGTR has expressed its contentment with the accuracy and sufficiency of the information presented in the representations.

The DGTR said that in light of the well-substantiated representations submitted by Indian producers of the specified goods, and after a thorough assessment of the prima facie evidence provided therein regarding the dumping of these goods from the subject country, the resulting harm to the domestic industry, the Authority has initiated an anti-dumping investigation.

Also Read: India imposes anti-dumping duty on some Chinese steel for 5 years

“The Authority, hereby, suo moto initiates an anti-dumping investigation to determine the existence, degree and effect of the dumping with respect to the product under consideration originating in or exported from China the and to recommend the appropriate amount of anti-dumping duty, which if levied, would be adequate to remove the injury to the domestic industry,” the DGTR said.

Suo Moto refers to actions taken by a court, government authority, or official voluntarily and without any external prompting or request from another party.

The price undercutting from the subject country as a whole is positive and significant. Additionally, the domestic industry involved in this sector has experienced injury, including low-capacity utilisation, declining sales volume, financial losses, and a reduction in market shares for unframed glass mirrors.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Pokarna zooms 10% on favourable order from US Department of Commerce on anti-dumping duty

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Shares of Pokarna Ltd rallied more than nine percent on Friday after the United States Department of Commerce announced nil anti-dumping duty for two years on the company’s subsidiary. The shares of Pokarna gained as much as 9.8 percent reaching intraday high of Rs 464. At 10.39 am, the stock was trading 7.34 percent higher at Rs 453.3 apiece on BSE.

In a filing to the stock exchanges on Thursday, Pokarna said that the US Department of Commerce announced the final results of its first administrative review of quartz surfaces anti-dumping duty order. It has finally determined that Pokarna Engineered Stone Ltd (PESL), a wholly-owned subsidiary of the company, did not make sales of subject merchandise at less than normal value during the period under review from December 13, 2019 to May 31, 2021.

Accordingly, PESL’s anti-dumping duty for the said period has been finally determined to be nil.  PESL, the wholly-owned subsidiary of Pokarna, is an exporter of natural quartz surface to the US.

The final decision comes after the US Department of Commerce announced the preliminary results of its first administrative review of quartz surfaces anti-dumping duty order in July.

In June 2022, the Commerce department published the anti-dumping duty order on certain quartz surface products (QSP) from India in the Federal Register.

Pokarna is the largest exporter of finished granite in India with exports to over 12 countries globally across Europe, Middle East and predominantly North America.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Comm min recommends continuation of anti-dumping duty on Chinese Aluminium foil

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The commerce ministry has recommended the continuation of anti-dumping duty on Chinese aluminium foil, used in food and pharma sectors, for five years to guard domestic players from cheap imports. In a notification, the ministry’s investigation arm Directorate General of Trade Remedies (DGTR) has said there is continued dumping of the foil from China, and the imports are likely to enter the Indian market at dumped prices in the event of expiry of the duty.

“The authority recommends continued imposition of anti-dumping duty…so as to remove the likelihood of dumping and injury to the domestic industry,” the directorate said. It has recommended the duty in the range of USD 469 and USD 1,106 per tonne. The finance ministry takes the final decision to impose this duty. The duty was earlier imposed by the ministry in May 2017.

Hindalco Industries, Raviraj Foils, Jindal India jointly filed an application before the DGTR for the initiation of sunset review investigation concerning imports of ‘Aluminium Foil 5.5 Micron to 80 Micron’ originating in or exported from China. The applicants sought the continuation of the anti-dumping duty.

Also Read | Outlook on crude oil still bearish; bullish on aluminium: Nirmal Bang’s Kunal Shah

The request was based on the ground that the expiry of the anti-dumping duty was likely to result in continuation/recurrence of dumping of the foil and consequent injury to the domestic industry, the notification has said. In international trade parlance, dumping happens when a country or a firm exports an item at a price lower than the price of that product in its domestic market.

Dumping impacts the price of that product in the importing country, hitting the margins and profits of manufacturing firms. According to global trade norms, a country is allowed to impose tariffs on such dumped products to provide a level-playing field to domestic manufacturers. The duty is imposed only after a thorough investigation by a quasi-judicial body, such as DGTR, in India.

Imposition of anti-dumping duty is permissible under the World Trade Organization (WTO) regime. India and China are members of this Geneva-based organisation, which deals with global trade norms. China is a key trading partner of India. The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Finance Ministry revokes phenol anti-dumping duty: Will it impact Deepak Nitrite?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The Ministry of Finance has revoked anti-dumping duty on phenol imports. This is with respect to phenol imports from European Union, Singapore and Korean RP. Deepak Nitrite manufactures this particular product.

The analysts are expecting Rs 50-70 crore hit on the bottomline though they are also saying that the imports from these particular geographies is not much.

Additionally, the analysts also expect the company to make up for losses by increased exports because the company is producing phenol at higher capacities right now. This would mean a 7-10 percent hit on the bottomline. However, it is expected that it will be covered by the extra exports that the company could do of phenol.

Also Read: India hits 100-crore vaccination mark: Key facts and timeline

According to IIFL, this removal is only on Korea, Singapore and EU but these countries do not have significant exports to the Indian subcontinent.

There is no such impact on ground and prices of various other products like Diamino Stilbene Disulfonic Acid (DASDA) and sodium nitrite have risen sharply. That is something that could offset the negative impact that would come in from this anti-dumping duty revocation.

Also Read: DCM Shriram Q2FY22: Ethanol biz helps mitigate low sugar volumes; caustic soda demand high

Watch the accompanying video of CNBC-TV18’s Sonal Bhutra for more details.

Catch all market updates here.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

NOCIL shares hit 52-week high as anti-dumping duty on rubber chemicals likely

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Shares of NOCIL surged more than six percent on the BSE on Wednesday as the likely imposition of anti-dumping duty on imported rubber chemicals boosted business prospects for the company. The scrip hit a 52-week high at Rs 310.95.

Anti-dumping duty may be imposed on imported rubber chemicals PX-13 from European Union and rubber chemical MOR from China which is seen benefitting NOCIL.

NOCIL is an India-based company, which offers basic organic chemicals. The company is engaged in the business of manufacturing and trading rubber chemicals, including PX-13 and MOR.

Read Here |  Moneycontrol Pro Ideas For Profit: Here’s why NOCIL is in focus

These rubber chemicals were exported to India by China and European Union below their normal value which has resulted in serious damage to domestic players.

With the anti-dumping duty, the profitability of domestic players like NOCIL is likely to be protected.

At 11:15 am, shares of NOCIL were trading five percent higher at Rs 307.55. The stock has been gaining for the last five days and has given nearly 12 percent returns during the period.

In one month, the scrip has gained nearly 17 percent while year to date, the stock zoomed 115 percent.

Catch LIVE market updates here.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Anti-dumping duty on MDF imports should help bring industry at par: Century Plyboards

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Century Plyboards India is buzzing in trade on the back of them launching a new plywood product with fire-fighting properties. Keshav Bhajanka, Executive Director of the company spoke to CNBC-TV18 to talk about their new product and the outlook for FY22.

Talking about MDF segment he said, “The entire industry would be at 85 percent plus utilisation levels. We are at 100 percent plus and that is why they are going for a capital expansion. The tailwinds are very good for all our products actually.”

On imports and anti-dumping duty, Bhajanka said, “The quantum of imports has shrunk drastically and that is primarily due to the fact that shipping has been in turmoil, and so the container availability into India has been extremely good.”

“Imports are close to still 10 percent cheaper than domestic products and going forward if the anti-dumping duty is levied we would be pretty much at par,” he added.

Speaking of demand Bhajanka said, “With regards to new cases it is a little too early for us to comment because the lockdown is still being formulated but as of last quarter the demand was extremely strong. I think there is a bounce-back in the building material sector. The trend of demand until this latest outbreak – there might be a few lockdowns in selected parts was very good, now we have to wait and see how it goes forward.”

Watch the accompanying video for more.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Commerce min for extension of anti-dumping duty on carbon black used in rubber industry

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The commerce ministry has recommended for extension of anti-dumping duty for five years on carbon black used in the rubber and tyre industry from China and Russia, with a view to guard domestic players from cheap imports from these two countries.

In a notification, the ministry’s investigation arm Directorate General of Trade Remedies (DGTR) has said there is “positive” evidence of likelihood of dumping of ‘carbon black used in rubber applications’ and injury to the domestic industry if the existing anti-dumping duty would be removed.

“The authority considers it necessary to recommend continuation of definitive anti-dumping duty” on all imports from China and Russia for a “further period of five years,”, it has said. The directorate has recommended two duties, USD 494 per tonne for imports coming from China and USD 36.17 per tonne from Russia. The finance ministry takes the final decision to impose this duty.

In its probe, the directorate has concluded that there is continued dumping of the product from these countries and “the imports are likely to enter the Indian market at dumped prices in the event of expiry of duty”.

The Carbon Black Manufacturers Association, on behalf of domestic producers, had filed the application before the DGTR for the continuation of the duty on the product from these two nations.

In international trade parlance, dumping happens when a country or a firm exports an item at a price lower than the price of that product in its domestic market. Dumping impacts the price of that product in the importing country, hitting margins and profits of manufacturing firms.

According to global trade norms, a country is allowed to impose tariffs on such dumped products to provide a level-playing field to domestic manufacturers.

The duty is imposed only after a thorough investigation by a quasi-judicial body, such as DGTR, in India. The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow