Shares of speciality chemicals and fertilizer players are higher after the Directorate General of Trade Remedies (DGTR) recommended anti-dumping duty on isopropyl alcohol (IPA) imported from China.
The proposed duty of $217 per metric tonne for most companies exporting IPA from China is seen as a significantly positive development for Indian manufacturers such as Deepak Nitrite and Deepak Fertilizers and Petrochemicals, the only two domestic producers of IPA.
Isopropyl alcohol is used as rubbing alcohol and hand sanitizer as well as a solvent. It is also an ingredient in antiseptics and disinfectants.
At 10.50 AM, Deepak Nitrite's stock was up by 4 percent, trading at Rs 3,073. Deepak Fertilizers shares traded 0.8 percent higher at Rs 1,060. The proposal also triggered a rally in other players in the specialty chemical sector such as Gujarat State Fertilizers & Chemicals, Laxmi Organic Industries, Rashtriya Chemicals and Fertilizers, and Fertilizers and Chemicals Travancore , sending them higher by 3-7 percent.
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An anti-dumping duty on IPA could protect Indian producers from the surge in cheaper imports from China - which nearly doubled in FY23 - now accounting for approximately 65 percent of total imports into India.
Apart from the proposed duty on IPA, another recommendation was to impose anti-dumping duty on Epichlorohydrin (ECH) imports - used in plastic, glycerols, resins, and water purification - from Thailand, Korea, and China, which would aid companies like Epigral.
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