Synopsis:
The chemical sector is set to benefit from DGFT’s recommendation of anti-dumping duties on PTFE imports from China and Russia. The move follows an investigation confirming that dumped imports caused price undercutting, suppressed domestic prices, and reduced profitability for local producers.
The chemical sector witnessed a notable development as the Directorate General of Trade Remedies (DGTR) recommended anti-dumping duties on PTFE imports from China and Russia. The decision follows a detailed investigation triggered by domestic producers, which found that imported PTFE was being sold in India at below-market prices, causing material injury to local manufacturers.
The product under consideration is Polytetrafluoroethylene (PTFE), widely used in the electronics, mechanical, and chemical industries for its chemical inertness, electrical and thermal insulation, low friction, non-toxicity, non-flammability, and excellent performance across a wide frequency range.
The investigation highlighted price undercutting, suppressed domestic prices, declining profitability, and reduced market share, prompting the recommendation of duties to restore fair competition.
The recommended duties are aimed at offsetting the injury caused by dumped imports. DGFT has recommended an anti-dumping duty of $3–6 per kg on Chinese PTFE, except for imports from Chemours. This ruling is expected to strengthen the competitiveness of domestic PTFE producers while also indirectly benefiting other companies with upstream and downstream linkages in the fluorochemical sector. Here are three stocks which might benefit from this:
1. SRF Ltd
Incorporated in 1970, SRF Ltd. is a diversified Indian multinational specializing in chemicals, technical textiles, and specialty materials. The company’s portfolio includes fluorochemicals, industrial intermediates, engineering plastics, tyre cord and belting fabrics, refrigerants, and packaging films. SRF operates multiple plants across India in Rajasthan, Uttarakhand, Tamil Nadu, and Madhya Pradesh, with international facilities in Thailand and South Africa, marketing its products under brands like Dymel, Petlar, Floron, and Tufnyl.
The company has a market cap of Rs. 86,806.53 crore. Its stock opened at Rs. 2,936 and touched a high of Rs. 2,959.40 from the previous close of Rs. 2,937.55, marking an intraday increase of approximately 0.75 percent.
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2. Gujarat Fluorochemicals Ltd
Incorporated in 2018, Gujarat Fluorochemicals Ltd. is a chemical manufacturer and trader specializing in bulk chemicals, fluorochemicals, fluoropolymers, and related products. The company serves key industries including chemical processing, oil & gas, and automotive, while also catering to emerging sectors such as 5G, electric vehicles, semiconductors, and green hydrogen. Headquartered in Gujarat, it supplies products across 14 states in India and 13 countries globally.
The company has a market cap of Rs. 42,731 crore. Its stock opened at Rs. 3,838.45 and reached a high of Rs. 3,901.15 from the previous close of Rs. 3,800.90, registering an intraday gain of approximately 2.63 percent.
3. Stallion India Fluorochemicals Ltd
Stallion India Fluorochemicals Ltd. is a manufacturer of refrigerants and industrial gases serving industries including automobiles, air-conditioning and refrigeration, pharmaceuticals, defence, and semiconductors. It has upstream and downstream linkages in the PTFE and specialty chemicals sector, positioning it to benefit indirectly from protective trade measures.
The company has a market cap of Rs. 1,705.49 crore. Its stock opened at Rs. 203.80 and surged to a high of Rs. 215 from the previous close of Rs. 196.95, representing an intraday jump of roughly 9.22 percent.
Written by – Manan Gangwar
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