Big news for Thirumalai Chemicals, IG Petrochemicals! Import duty on Phthalic Anhydride likely soon, says Anil Singhvi
The central government will likely be imposing import duty on Phthalic Anhydride soon, said Zee Business Managing Editor Anil Singhvi.
The central government will likely be imposing import duty on Phthalic Anhydride soon, said Zee Business Managing Editor Anil Singhvi. The development comes after Directorate General of Trade Remedies (DGTR) recently sought to increase import duty on this specialty chemical, informed officials in the know of the matter. It has made the requisite recommendation, say sources. The official sources privy to the matter informed Zee Business Executive Editor Swati Khandelwal that Finance Ministry is likely to come out soon with an official notification in this regard. According to the sources, it has been recommended to impose custom duty on Korea-imported Phthalic Anhydride for two years. It is said that DGTR has already given in-principal approval to it and the official notification is only a formality.
Phthalic Anhydride is a chemical intermediate that is used in plastic industry. The move is likely to boost two companies - IG Petrochemicals Ltd and Thirumalai Chemicals Ltd the most. Both IG Petro and Thirumalai Chem are domestic market leaders in this space. It is said that domestic companies in this space were being affected negatively from the South Korean imports and the action in the offing is all set to help them.
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Earlier, domestic firms have said that the increase in imports of Phthalic Anhydride from South Korea is causing serious damage to them. India had initiated a probe into an alleged increase in imports of the chemical, which is used to make dyes and insecticides, from South Korea following complaints by domestic firms.
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While IG Petrochemicals share price closed at Rs 323, up by 2.92 per cent, Thirumalai Chemicals Ltd. share price closed at Rs 78.90, up by 3.34 per cent on Thursday - stock markets were closed on Friday on account of Mahatma Gandhi Jayanti.
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