India drops anti-dumping probe against MEG imports from Saudi Arabia (updated)

India Glycols

07/04/2020 05:52

(Adds details)
    By Nidhi Verma
    NEW DELHI, April 7 (Reuters) - India has dropped an
anti-dumping investigation over imports of polyester feedstock
monoethylene glycol (MEG) from Saudi Arabia, but will continue
the effort against Kuwait, Oman, Singapore and the United Arab
Emirates, the government said.
    In an order on Monday, the government said Reliance
Industries Ltd  RELI.NS  asked in February for Saudi Arabia to
be dropped, after the company had sought the investigation in
December into cheaper MEG exports by all five nations.
    "Further, it has been requested by the company to continue
the investigation and recommend imposition of provisional
anti-dumping duty," it added, citing Kuwait, Oman, Singapore and
the UAE as the countries from which imports are to be targeted.
    The order did not make clear why Reliance had sought
termination of investigation against Saudi Arabia. Indian rules
allow such immediate termination after a written request from
the affected domestic industry that sought the investigation.
    Billionaire Mukesh Ambani-promoted Reliance deals with all
five countries by way of imports and exports of crude and
refined fuels.
    Last year, Reliance signed an initial deal with state oil
giant Saudi Aramco to sell a 20% stake for about $15 billion in
its oil to chemicals business.  urn:newsml:reuters.com:*:nL4N2580VM
    In its December application, Reliance said the MEG export
prices of the five countries were lower than their domestic
prices. Oil- and gas-rich ethylene producers Kuwait, Oman, Saudi
Arabia and UAE get feedstock at discounted prices, it added. 
    Reliance had called for the raw material costs of the four
nations to be benchmarked to international prices, while seeking
that those of Singapore be linked to Asia-Pacific prices in
reports published by pricing intelligence service ICIS.
    Reliance's plea, filed on behalf of Indian industry, was
supported by another petrochemical company, India Glycols Ltd
 IGLY.NS .
    MEG is a major feedstock used to produce polyester fibres,
films, and resins, besides finding use in the fibre treatment of
textiles, the paper industry, and in adhesives, inks, and
cellophane. 

 (Reporting by Nidhi Verma; Editing by Christian Schmollinger
and Clarence Fernandez)
 ((nidhi.verma@thomsonreuters.com; +91 11 49548031; Reuters
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