Caprolactam from China, Russia, Thailand and USA - DGTR Initiates Anti-Dumping Investigation on Complaint of Sole Producer GSFC (Gujarat State Fertilizers & Chemicals Ltd.)

Ø Reliance Main Producer of Benzene Raw Material for Caprolactam

Ø Nylon Producer and Users to Suffer as Indian Price of the Raw Material is already much Higher than China

Ø GSFC with 60,000 tonne Production Caters to only 25% of 2 lakh tonne per year Demand

[DGTR Initiation Notification SETU Case ID – AD/OI/052/2026 dated 29.09.2026]

· Notification: DGTR, Ministry of Commerce & Industry, initiated an anti-dumping investigation on 29 September 2026 concerning imports of Caprolactam originating in or exported from China PR, Russia, Thailand and the United States of America. SETU Case ID: AD/OI/052/2026.

· Product under consideration (PUC): Caprolactam, also known as 6-Hexanelactam, CAS No. 105-60-2. It is a monomer and key raw material for manufacturing Nylon-6 chips, which are further used for nylon tyre cord fabric and nylon filament yarn.

· Forms: Caprolactam is sold in liquid and solid forms; Indian consumers mainly use the solid form in white crystal or flake form.

· Customs classification: Classified under Chapter 29, tariff item 2933 71 00. The classification is indicative and does not restrict the scope of the PUC.

· Unit of measurement: Metric Tonnes (MT).

· Subject countries: China PR, Russia, Thailand and USA.

· Period of Investigation (POI): 1 April 2025 to 31 March 2026. Injury investigation covers 1 April 2022 to 31 March 2026, divided into three preceding financial years plus the POI.

· Domestic industry: Gujarat State Fertilizers & Chemicals Ltd. (GSFC) filed the application. It was the only Indian producer of Caprolactam during the POI and accounted for 100% of Indian production.

· Other Indian producer: The Fertilisers and Chemicals Travancore Ltd. (FACT) had resumed production during 2022-23 and 2023-24 but stopped again in 2024-25, allegedly due to low-priced dumped imports, and remained shut during the POI.

· Dumping—China PR: GSFC claimed China should be treated as a non-market economy. For initiation, the normal value was determined using the price actually paid/payable in India for the like product, adjusted for a reasonable profit margin.

· Dumping—Russia, Thailand & USA: Normal value was determined using export prices to countries other than India, with appropriate adjustments to arrive at ex-factory prices.

· Export price: Based on DGCI&S import data, adjusted for ocean freight, marine insurance, port handling, commission, credit cost and inventory carrying cost to arrive at the ex-factory export price.

· Prima facie dumping: Comparison of normal value and export price showed that the dumping margin from each of the four subject countries was above the de minimis level and significant.

· Injury to domestic industry: Subject imports increased significantly despite declining demand, both in absolute terms and relative to Indian production and consumption. Import landed prices were below GSFC's selling prices, resulting in price undercutting.

· Adverse performance: GSFC's production and domestic sales declined, while the market share of subject imports increased. Profitability, cash profits and return on capital employed remained below reasonable levels and deteriorated during the POI.

· Causal link: DGTR found prima facie evidence of dumping, material injury to the domestic industry and a causal link between dumped imports and injury, justifying initiation of the investigation.

· Anti-dumping duty: No anti-dumping duty has been imposed at this stage. The investigation will determine the existence, degree and effect of dumping and recommend the appropriate duty, if warranted.

· Comments on PUC/PCN: Interested parties may submit comments on the scope of the PUC and propose a PCN methodology within 15 days of initiation.

· Submission deadline: Confidential and non-confidential submissions are generally required within 37 days from circulation/transmission of the non-confidential application, as specified in the notification.

· Mode of filing: All submissions must be made through the SETU Portal under Case ID AD/OI/052/2026.

· Confidentiality: Parties claiming confidentiality must simultaneously provide a meaningful non-confidential version; failure to comply may result in rejection or non-consideration of the submission.

Effect of this Notification: An anti-dumping investigation has been formally initiated against Caprolactam imports from China PR, Russia, Thailand and USA. There is presently no anti-dumping duty, but the investigation could lead to a DGTR recommendation for duty if dumping, injury and causal link are established.