India’s DGTR opens countervailing and duty investigation on Chinese PVC

India has launched a countervailing duty investigation into imports of PVC suspension resin from China, escalating trade scrutiny over a key polymer widely used in construction and infrastructure applications.

In a notification dated 26 February, the Directorate General of Trade Remedies (DGTR) under the Ministry of Commerce and Industry said the probe was initiated following a petition by Chemplast Cuddalore Vinyls Limited, DCM Shriram Limited and DCW Limited. The investigation covers products primarily classified under HS code 3904 10 20 and spans the period from 1 October 2024 to 30 September 2025.

The petitioners allege that Chinese producers benefit from extensive state support, including tax incentives, preferential financing and the provision of inputs such as power and land at below-market rates. They contend that a surge in import volumes during the period of investigation suppressed domestic prices and eroded profitability, citing weaker performance indicators such as PBIT and ROCE alongside rising inventories. The applicants have sought the imposition of retrospective duties, arguing that the domestic industry has faced severe financial stress.

The DGTR has recommended provisional assessment of all subject imports while the investigation is under way. Interested parties have been given 37 days to submit responses from the date of the annoucement.

India remains structurally short in PVC, relying on imports to bridge the gap between domestic capacity and robust demand from pipes, fittings, films and cables. The country is also the largest destination for Chinese PVC exports. According to data from CommoPlast, India accounted for 37.6% of China’s total PVC exports in 2025.

Any move to impose provisional duties could curb Chinese inflows and lend support to domestic pricing. However, tighter import availability may also raise input costs for downstream processors if alternative supply sources prove more expensive or limited. 

The case introduces fresh policy uncertainty into near-term trade flows and will be closely watched for its potential to alter regional PVC arbitrage and pricing dynamics.

Written by: Farid Muzaffar