India may scrap the anti-dumping duties imposed on the imports of viscose filament yarn (VFY) from China.

There is a feeling products subject to the anti-dumping measures do not substantially damage the domestic industry of India.

This is good news for the viscose filament yarn industry and the downstream sector considering the current exchange rates and the delicate international trade mood.

The anti-dumping duty was levied by India starting from 2005.

May is traditionally a slack season in the Chinese market and coupled with new capacities coming on stream the VFY market is expected to face bigger pressure in the middle of year. But the demand from India will grow with the cancellation of the anti-dumping duty, so the impact on the market will be alleviated.

In India, traditional religious costumes and embroidery thread consume more than 60 kilo tons of VFY a year. But the capacity in the country is only 40 kilo tons. Indian VFY companies lack the production technology for high-end fine-denier filament, so domestic downstream producers will have more options by the cancellation of the tariff. Costs will obviously decrease, and the competitiveness of their own products will improve, which is likely to bring more demand and create a virtuous circle.