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China Rubber Association organized a delegation to India to deal with India's carbon black special protection case against China

  • Categories:Industry news
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  • Time of issue:2012-02-06 10:42
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(Summary description)On December 2, 2011, India's safeguard bureau issued a notice, deciding to launch a special safeguard investigation on rubber carbon black originating in China. The product under investigation is rubber carbon black.

China Rubber Association organized a delegation to India to deal with India's carbon black special protection case against China

(Summary description)On December 2, 2011, India's safeguard bureau issued a notice, deciding to launch a special safeguard investigation on rubber carbon black originating in China. The product under investigation is rubber carbon black.

  • Categories:Industry news
  • Author:
  • Origin:
  • Time of issue:2012-02-06 10:42
  • Views:
Information
On December 2, 2011, India's safeguard bureau issued a notice, deciding to launch a special safeguard investigation on rubber carbon black originating in China. The product under investigation is rubber carbon black. This case was filed by M / s. Phillips carbon black limited and M / s. hi tech carbon on behalf of two members of the Association of carbon black manufacturers of India Please.
 
For this reason, China Rubber Industry Association attaches great importance to and entrusts carbon black branch to communicate with carbon black enterprises exporting to India. Eight carbon black enterprises, including Jiangxi black cat, Hebei Daguang, Shandong Jinneng, Hebei Longxing, Ningbo detai, Suzhou Baohua, Maoming Huanxing and Qujing Zhongyi, participated in the investigation and litigation of this case. With the strong support of the Ministry of Commerce and the organization of China Rubber Industry Association, seven people, including the Ministry of Commerce, China Rubber Industry Association, China Chamber of Commerce for import and export of Minmetals, carbon black branch, Jiangxi black cat, Hebei Daguang and Shandong Jinneng, went to India on January 13-19, 2012 to conduct industry lobbying, government consultation and factory visit.
 
Xu Wenying, Executive Deputy Secretary General of China Rubber Industry Association, introduced that during the visit, the delegation met and exchanged with three major Indian carbon black manufacturers, namely, Philips carbon black, high carbon black and continental carbon black under Bora group, and the sales directors of the three companies participated in the discussion. They are not only the prosecution of this special safeguard case, but also the top three carbon black producers in India, accounting for about 90% of India's total carbon black production. In addition, the delegation also visited the Indian safeguards agency and the Indian double anti investigation agency, and exchanged views with the Indian Tire Manufacturers Association (Atma), Apollo, JK tire factories, etc.
 
In the exchange, China explained to the relevant parties of India why China's export of carbon black to India increased from July to September last year, mainly because India's tire industry developed rapidly, which led to strong demand for China's carbon black. It is clarified that China and India carbon black industry are not antagonistic relations, but carbon black industry peers. More cooperation should be carried out in carbon black production technology such as tail gas power generation.
 
Through the exchange and communication with all parties, I learned about the relevant situation of Indian carbon black and tire industry, as well as their relevant positions. In 2011, India's carbon black production capacity was 910000 tons, the actual production was 860000 tons, the export was 200000 tons, and the actual domestic demand was only about 600000 tons, indicating that its carbon black production capacity was surplus, which was not the shortage we thought before. Indian carbon black enterprises reflect that Indian tire enterprises usually buy more when carbon black is cheap, but carbon black enterprises hope to buy regularly, so that carbon black enterprises can produce and sell normally. The production cost of Indian carbon black industry is relatively high. On the one hand, its executive income is very high, but the efficiency of workers is very low. The workload of four workers is only one person in China. On the other hand, Indian carbon black raw materials are totally different from that of China. The Indian side mainly uses FCC oil, while China mainly uses coal tar. Last year, the price of coal tar is far lower than that of FCC oil.
 
India's fiscal year is from April to March. In 2011, India's GDP grew by 6.9% from the first quarter to 6.6% in the second quarter and 6% in the third quarter, while bank interest rose to 12% and inflation reached 9%. The slowdown in economic growth also reduced the growth of India's tire market. From April to November 2011, the output of passenger car tires increased by only 1%, to 10.3-10.4 million; the output of passenger car tires increased by 4%, to 80-80.6 million. Especially after September, India's tire demand declined significantly, but because carbon black was purchased quarterly, it could not be easily cancelled. Many imported carbon black became passive inventory, which also led to an increase in India's domestic carbon black inventory. In addition, the export volume of Indian carbon black enterprises to Europe increased significantly in the first and second quarter, which led to the import of Chinese carbon black by many Indian tire enterprises. In May, the shortage of soft carbon black in India was also an important reason for the increase of import from China.
 
From April to may last year, China exported 2000 tons of carbon black per month to India, which increased to more than 8000 tons in July and reached the highest value of 13000 tons in September, but began to decline since October. The real reason for the increase of China's carbon black export is that since 2009, India's carbon black industry has increased its export in order to obtain high profits, but in 2011, the European and American market was depressed, which hindered India's carbon black export, and they want to turn to the domestic market again. From July to November 2011, India's tire output decreased by about 15%, and the demand for carbon black decreased. However, in September, it was the import peak again, mainly because it took 4-5 months for India's carbon black import certification. After India's domestic soft carbon black was out of stock in May, many tire enterprises turned to China, which is good to form the import peak in September. In addition, Indian tire companies purchase on a quarterly basis. September is the last month of the second quarter, so the purchase volume is also large.
 
It is understood that the proportion of carbon black imported by Indian tire enterprises usually accounts for 10% - 15%, and the highest proportion is 25%. Even for China's carbon black special insurance, Indian tire companies will continue to buy China's carbon black, because tire companies need to ensure the diversification of carbon black procurement. After all, the production capacity of the first two carbon black companies in India accounts for 80%, which is easy to cause monopoly.
  
Xu also introduced India's attitude towards China's special protection for carbon and black. The tire manufacturers association of India clearly expressed its opposition to this special insurance and said it would send lawyers to submit objections; Apollo and JK tire factories also expressed their opposition clearly and will submit objections through the tire manufacturers association of India. They said that the carbon black price difference between China and India is between 1% and 5%. Indian domestic carbon black enterprises are expanding production instead of going out of business. The only carbon black factory is closed because of pollution and poor management. In addition, India's domestic tire industry has made rapid investment. For example, Michelin and Bridgestone have invested in setting up factories in India, together with the investment of other tire companies, the total investment will reach US $2 billion. By 2014, at least 10 million passenger car tires and 60-70 million passenger wheel tires will be added, so the demand for carbon black is large. India's carbon black companies hope that China will take the initiative to reduce the number of exports. It is reported that himadarish chemicals, India's fourth largest carbon black production plant, has an annual production capacity of 120000 tons / year and has not participated in the lawsuit.
 
 
 
The attitude of India's double anti investigation bureau is that the fundamental reason for the increase of trade friction between China and India is that the trade deficit is too large. China exports 4 billion US dollars to India every year, but only imports 2 billion US dollars from India, which affects the real economy of India. In addition, the bureau also believes that even if anti-dumping duties are imposed on Chinese carbon black enterprises, it will not violate the relevant provisions of the WTO to levy special bonded duties again.
 
To this end, remind domestic carbon black export enterprises that even if the price of carbon black exported by China is higher than that of India, it can not be ruled out that China may be anti-dumping, and it is necessary to export at a price higher than its own cost to reduce trade friction. She also said that in terms of legal defenses, China has an advantage, but the prosecution, Bora group, is strong in India and has great influence on the government, and China should attach great importance to it.
 
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On December 2, 2011, India's safeguard bureau issued a notice, deciding to launch a special safeguard investigation on rubber carbon black originated in China. The product under investigation is carbon black for rubber. The tariff code of Indian customs is 28030010.
 
The case is filed by the association of carbon black manufacturers on behalf of its two members, M / s. Phillips carbon black limited and M / s. hi tech carbon. The two companies claim to account for more than 80% of India's domestic carbon black production.
 
Indian applicants provided data of domestic industrial damage from April 2008 to October 2011, claiming that during the damage investigation period, China's carbon black import increased by 429%, India's domestic industrial output, capacity utilization ratio, market share and profit decreased significantly, and domestic inventory increased significantly. China's carbon black has caused market disruption or threat of market disruption to India's domestic industry.
 
Indian applicants require a special bond of 4 years for Chinese carbon black.
 
Prior to that, on August 30, 2011, the Ministry of Commerce and industry of India decided to launch mid-term anti-dumping review on rubber carbon black originated from China, Australia, Russia and Thailand. The applicant for reexamination is the main representative of India's end-user of imported carbon black, India Tire Manufacturers Association (Atma), demanding to reduce the anti-dumping duty rate on the parties involved. The reason for applying for reexamination is that the export price of the countries involved in the case to India has increased significantly, which has led to a significant increase in the CIF price, while the price of raw materials has decreased significantly, which has led to a significant decrease in the damage price of India's domestic industry. The combined effect of the two has led to a decrease in the extent of the damage, so it is necessary to reexamine the original anti-dumping measures and reduce the original anti-dumping tax rate.
 
This article is excerpted from http://www.cncb.org.cn/a/? L-7765957383.html

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