ECONOMY

MDF Industry Update – Proposed Countervailing Duty May Hit Imports Structurally: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

In its final findings with-respect-to case no. 06/2019, the Directorate General of Trade Remedies on May 03, 2021 recommended countervailing duty on imports of MDF into India and originating in or exported from Malaysia, Thailand, Indonesia, Vietnam and Sri Lanka for a period of five years.

The same needs to be ratified by the Union finance ministry.

The recommended CVD structure (if ratified) is likely to negate the entire pricing differential (domestic versus imports) of 8-10% in thick MDF (70% of MDF market) and prune down the differential to 8-10% (from 20-25% earlier) in thin MDF (30% of market).

This we believe would enable south-based MDF manufacturers to replace major MDF imports (on structural basis), which are currently estimated at 25-30% of the overall MDF market in India.

Click on the attachment to read the full report:

ICICI Securities MDF Industry Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Most Related Links :
usnewsmail Governmental News Finance News

Source link

Back to top button