India has imposed a 5-year anti-dumping duty on imports of a key rubber chemical from China, the EU, and the US. This it could have a real impact.
A few things worth watching:
• Imported material becomes less competitive.
• Domestic manufacturers get some pricing power back.
• Capacity utilization could improve if demand shifts locally.
• Margin pressure from cheap imports may ease. The EU recently noted that chemicals account for nearly half of its new trade-defence cases, and several countries are becoming more aggressive in protecting domestic industries…
And looking the chart it looks like markets have accepted the decision.
