India initiates anti-dumping probe on beta naphthol imports from China

The application alleges that Beta Naphthol—a chemical used primarily in the production of dyes, pigments, pharmaceuticals, insecticides, and various industrial applications—is being dumped into the Indian market at unfairly low prices, causing material injury to the domestic industry, the DGTR said in a notification.

The probe will assess whether such imports have adversely affected the financial and operational performance of Indian manufacturers. Bodal Chemicals, supported by Eastern Naphtha Chemicals Pvt Ltd and Multi Organics Pvt Ltd, claims to represent a significant share of the domestic production and has asserted that dumped imports have led to price suppression, profit erosion, and overall decline in financial returns.

Beta Naphthol (also known as 2-Naphthol or P-Naphthol), a chemical with low solubility in water but high reactivity, is classified under Chapter 29 of the Customs Tariff Act, with HS codes 2907 15 20 and 2907 15 10. It is used in a broad range of industries including pharmaceuticals, rubber, textiles, and electroplating.

The normal value of the product in China has been constructed based on domestic production costs in India, due to the lack of reliable market data from China. Preliminary comparisons indicate that the dumping margin is significant and above the de minimis threshold, warranting further investigation.

DGTR noted that the alleged dumping has affected the profitability and cash flow of domestic producers and has resulted in underperformance in areas such as return on investment and cash profit.

The investigation period spans from October 1, 2023, to September 30, 2024, while the injury analysis will cover financial years 2021–22, 2022–23, 2023–24, and the investigation period.

Should the investigation conclude that dumping has occurred and caused injury, anti-dumping duties may be imposed on Chinese imports to level the playing field for domestic producers.

ALCHEMPro News Desk (KD)