The Indian government has extended the country’s
anti-dumping duties on soda ash imports from a number of
countries until 2 July 2018.
Since 2012, India has imposed varying level of anti-dumping
duties on soda ash imports from China, the US, Kenya, Ukraine,
the EU, Iran and Pakistan.
China and the US are two of the biggest global exporters.
Imports from China incur a duty of $36.26/tonne, while
material from the US is subjected to a duty of $38.79/tonne.
In 2015 the India Glass Manufacturers’
Federation (AIGMF) applied to the Ministry of Commerce and
Industry to scrap the import duties, claiming that the
circumstances have changed and the duties are no longer
The government published its mid-term review in September
2016 and had recommended scrapping the anti-dumping duties,
but the final findings were challenged by petitioners.
Following months of review, the High Court of Gujarat made a
final decision to extend the tariff for another one year,
according to a government release at the end of June.
Shortly after the ruling, on 22 July, a petitioner
challenged the verdict arguing that "the one-year
extension of antidumping duty after the expiry of existing
antidumping duty would be illegal." As a result, the case is
back for review at the Indian High Court and could subject to
Indeed, although the June ruling will support local
production, many buyers are disappointed. Buyers in India were
expressing hope that the duties could be scrapped but the
ruling meant that they will have to continue to pay a higher
price for the material.
The final verdict was not surprising for many producers as
one told IM: "It’s not a new
concept, there have been anti-dumping duties for the past five
As EU imports incur the lowest level of duty at $9.17/tonne,
this ruling will also continue to support European
producers’ sales into India. However, due to
strong demand exceeding supply in recent months, many buyers
told IM that it has been difficult sourcing
According to IM’s price assessment on 3 August,
synthetic dense and light soda ash prices held unchanged
week-on-week at $240-250/tonne on a CIF India basis.
India has a soda ash production capacity of 3.1m tpa but the
country still relies on imports to meet domestic
Soda ash, or sodium carbonate, can be produced either by
mining natural sources or manufactured synthetically using salt
About half of the soda ash produced in the world is used in
the glass industry for the production of flat glass, container
glass, fibreglass and other products.
High exposure to glass markets means that soda ash demand is
significantly influenced by the fortunes of the construction
and automotive industries.
China is the world’s largest producer of soda
ash. While most of China’s output is consumed in
domestic markets, producers there have become increasingly
established in export markets. In 2016, China exported 2m
tonnes soda ash, according to China Customs data.
Production from China was lower in 2016 as, due to a
wastewater dam collapse, major producer Shandong Haihua Co.
shut down its 3m tpa synthetic soda ash production facility -
temporarily boosting US sales of soda ash in Asia.
The world’s second largest producer, the US, is
the largest global exporter. The US produced 11.7m tonnes in
2016 and holds estimated reserves of 23bn tonnes, according to
Three groups dominate production and have become the
world’s leading suppliers of soda
ash—American National Soda Ash Corp., which
represented three of the five US domestic producers in 2016;
multiple producers in China; and Solvay S.A. of Belgium.