By BullScreen Editorial Team 
Shares of domestic chemical companies rallied sharply on Friday after India’s trade body recommended imposing anti-dumping duties on a key chemical imported from China, boosting sentiment across the sector.
The Directorate General of Trade Remedies (DGTR), under the Ministry of Commerce, has proposed a duty of $3,453 per metric tonne on imports of 4,4-Diamino Stilbene-2,2-Disulphonic Acid (DASDA). The chemical is widely used in optical brightening agents and dye intermediates, especially in the textile industry.
The move follows an investigation triggered by a complaint from Deepak Nitrite Limited, which flagged concerns over low-priced Chinese imports hurting domestic manufacturers. The DGTR found preliminary evidence of dumping, noting that imports were priced below fair market levels, causing material injury to local players.
As part of the proposal, a reference price mechanism has been suggested. Importers would need to pay the difference if shipment prices fall below the benchmark level of $3,453 per tonne. The final decision now rests with the Ministry of Finance.
The development triggered strong buying interest in chemical stocks. Bodal Chemicals Limited led the rally, surging nearly 19% intraday. Sudarshan Chemical Industries Limited gained around 8%, while Deepak Nitrite Limited and Meghmani Organics Limited rose over 4% each.
India had previously imposed anti-dumping duties on DASDA imports, which were withdrawn in 2019. The potential reintroduction signals a renewed push to protect domestic manufacturers from unfair pricing practices.
If implemented, the duty could improve pricing power and margins for Indian chemical producers, while also reducing reliance on cheaper imports, strengthening the domestic industry outlook.