The carbon black industry has approached the Department of Chemicals and Petrochemicals (DCPC) seeking some reliefs and save it from heavy losses.

In a letter to the DCPC, the Association of Carbon Black Manufacturers (ACBM) said that the industry has increased its capacity to meet the present and potential demand from rubber industry whereas the increase in domestic demand is being met increasingly through imports which would lead to substantial under-utilisation of domestic production capacity or alternatively force it to export at unviable prices.

It sought the following reliefs:

1. Increase in anti-dumping duty on imports from China and Australia by USD 250/MT or alternatively imposition of safeguarding duty of equivalent amount.

2. Imposition of anti-dumping duty on imports from Korea of USD 250/MT.

3. Increase in anti-dumping duty on imports from Thai Tokai to Thailand by USD 162/MT as applicable for other exporters from Thailand.

\"We look forward to your positive consideration of our suggestion in order to save the carbon black industry from heavy losses due to low capacity utilisation in 2008-09 and continuing decreasing profitability,\" ACBM requested the DCPC.

ACBM said that inadequate level of anti-dumping duty has resulted in continuing increase in imports from China, Thailand and Australia. There is also significant higher capacity compared to demand in various exporting countries in South East Asia during this year.

The ACBM attributed this abnormal and alarming rise in imports to increase in imports from Korea as no anti-dumping duty is applicable; and inadequate level of anti-dumping duty.

The ACBM stated that there is sufficient domestic supply of carbon black after capacity enhancement during the past 5 financial years from 6 lakh MTPA to 9.15 lakh MTPA.