India’s trade regulator has increased anti-dumping duties on untreated fumed silica imports from a Chinese producer after finding evidence of duty circumvention. The move aims to protect domestic manufacturers from unfair pricing practices.
DGTR Finds Evidence of Price Manipulation
The Directorate General of Trade Remedies (DGTR) concluded that Shandong Dongyue Silicone Material had been absorbing previously imposed duties by reducing export prices, thereby undermining protective measures for Indian producers.
Following its investigation, the DGTR raised the duty on Shandong Dongyue to $1,296 per metric ton, up from $1,018 per metric ton. The decision is expected to raise the landed cost of Chinese fumed silica in India, offering more favourable conditions for local manufacturers.
Investigation Triggered by Domestic Complaint
The action stems from an anti-absorption review investigation launched on December 31, 2024, after Cabot Sanmar Limited alleged that the Chinese exporter was systematically lowering prices to neutralise duties first imposed in November 2021. The original measures targeted untreated fumed silica imports from China and South Korea, following a 2020 probe that confirmed dumping practices harming Indian producers.
Critical Industrial Material Under Scrutiny
Fumed silica—a synthetic amorphous silica—is a vital input for silicone sealants, coatings, adhesives, and pharmaceuticals. During the review period from July 2023 to June 2024, DGTR data showed Shandong Dongyue cut export prices to India by 30.5%, a sharper drop than the 22.7% fall in production costs and the 24.1% decline in other export markets. Rising input costs—some exceeding 18%—strengthened the case for intentional price manipulation.
Chinese Exporter Disputes Findings
Shandong Dongyue argued that the price drop reflected global oversupply, post-pandemic demand weakness, and currency fluctuations, claiming its product carried lower commercial value than other grades. However, Indian authorities maintained that India-specific price declines were disproportionate and inconsistent with global trends.
Final Decision and Duty Structure
As reported by knnindia.co.in, applying the lesser duty rule, the DGTR finalised higher duties for Shandong Dongyue while keeping existing rates for other Chinese suppliers—except Wacker Chemicals Fumed Silica (Zhangjiagang), which remains duty-free. South Korean producer OCI also retains zero-duty status. The revised duties will stay in place until November 10, 2026, aligning with the original five-year term set in 2021.
