The Indonesian government started a dumping investigation last month against polypropylene exported by Siam Cement Group. Thailand will ask Indonesia not to apply safeguard measures against imports of Thai polypropylene (PP), as per Bangkokpost. In 2010, Thailand exported almost three times its polypropylene exports in 2009 -about 250,000 tons. This increased amount was because of shutdown of a 260,000 ton plant by Indonesia’s second-largest producer, reducing domestic production to levels that it could serve only 60% of demand. Thailand believes that the increased exports did not affect the Indonesian domestic industry because of lack of sufficient domestic avails. Indonesia has alleged Thai manufacturers to have dumped polypropylene on the market to the tune of 15,000-20,000 tons a month. As per The Nation, Thailand claims that the higher import volume is in accordance with market demand, which was also simultaneously catered to by countries such as Singapore and Malaysia. If Thai polypropylene faces Indonesia's safeguard measure, the product would be subject to a high import levy or be limited by an export quota. Currently, export of the product to Indonesia is subject to zero |tariff under the Asean free-trade area.
13-May-11 
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